AustralianSuper seeks to fill key executive gap as chief officer retirement departs

Just as regulators raise pressure on super funds to lift customer service, AustralianSuper has lost a key executive who has quit to set up his own venture.

Chief officer retirement Shawn Blackmore has resigned from AustralianSuper.

AustralianSuper boss Paul Schroder is looking for a new retirement officer after the surprise departure of its relatively new boss, Shawn Blackmore.

The change comes at a bad time for the $355bn behemoth when regulatory expectations are ramping up as government and regulators increase focus on the $4 trillion sector.

Mr Blackmore’s departure after just two years as role as retirement chief was disclosed on the fund’s website earlier this month with little fanfare, despite his near 17-year career with the fund.

Before being appointed as chief retirement officer, Mr Blackmore was the executive in charge of member experience – which is another crucial area for the industry.

Profit for member funds are facing what some see as a tough battle to win support for its push to spread the costs for financial advice across all members. The retail funds grew on the back of their advice businesses but were beaten by the profit for member funds focus on better returns.

Few customers complain when returns are good but when problems arise they ask more questions.

Mr Blackmore could not be contacted on Tuesday but industry sources say he plans to set up his own venture in the retirement space in the new year.

AustralianSuper has rejected any talk of a fallout between the two and others say the move is simply a function of a long-term executive who wants new challenges.

His appointment as chief retirement officer in 2022 was heralded as a leap forward for AustralianSuper and a signal it was stepping up focus on what some see as the key function for a superannuation fund – looking after retirement plans.

Mr Blackmore achieved much of what he set out to do, laying down its strategy, building up the retirement division, putting retirement on the executive agenda and working on a new product.

The latter is still work in progress even through insurance group TAL has been working with the fund on an annuity-like product which has yet to see the light of day.

AustralianSuper has led the industry in the accumulation phase and now manages money for one in seven homes with a massive $385m a week in net inflows, or $20bn a year.

It has 3.3 million members but just 110,000 retirement accounts which will change significantly with industry assets in retirement tipped to increase from 26 per cent to 35 per cent.

In recent years the key financial regulators lifted their focus on the industry and this is now being reflected with action by ASIC and APRA against Cbus, Hesta, AustralianSuper and others.

The ACCC is also concerned by the concentration effects of big super which dominates corporate Australia’s share register.