Hostplus, Club Super in hospitality super fund merger

Hostplus and Club Super pass key milestone in planned merger of the two hospitality super funds.

Hostplus CEO David Elia. Picture: Alex Coppel.

Hostplus and Club Super have moved a step closer to merging, after the two hospitality super funds passed a key milestone by signing a successor fund transfer deed.

The merger, flagged in July, has a target completion date of November 1.

Hostplus is the country’s top-performing industry superannuation fund, with 1.2 million members and $42 billion in funds under management compared to just $600 million for Club Super, a Queensland-based hospitality industry fund with 22,000 members.

“It’s a proud moment for both of our organisations and the decision to merge has not been made lightly,” Hostplus chief executive David Elia said.

“We will continue to focus on ensuring our merged funds continue to deliver high-quality products and services, investment performance and retirement outcomes for our 1.2 million members and their families.”

Both funds believe their combined strengths can provide better outcomes for their members, Hostplus said.

“In executing the successor fund transfer deed, we are actively helping to bring enhanced services and benefits to our members and employers, while continuing to recognise and support the community and sporting clubs they work so tirelessly in,” said Club Super chair Sharron Caddie.

Members and employers will soon receive a detailed overview of the merger process and the next steps to successfully complete the merger.

The merger comes amid a push by the prudential regulator for smaller super funds to merge and provide support for the financial system.

In April this year, in the wake of the Hayne royal commission, legislation passed the federal parliament giving APRA enhanced powers to force underperforming funds to merge.

A month later EquipSuper and Catholic Super announced plans to merge their operations in a $26 billion deal, which is due to be completed by 2020.