Following the transaction, the new 250,000-member fund, incorporating LGIAsuper, Energy Super and Suncorp Portfolio Services Limited (SPSL), has around $31 billion in member savings.
In a statement issued on Friday, LGIAsuper’s CEO Kate Farrar said the transaction will enable the fund to grow and thrive in an increasingly complex and competitive national market.
“The acquisition of the SPSL business gives us the combined size and scale to deliver efficiently for all our members, while maintaining a personal and boutique member experience that differentiates us from the growing number of superannuation megafunds,” Ms Farrar said.
“This transaction is unique in that we are a profit-for-members fund acquiring a retail fund, with the ultimate intent being to mutualise the retail fund and put benefits in the hands of all members.
LGIAsuper’s vision for the future, Ms Farrar said, is to achieve a sustainable fund size “that maintains our status as a boutique and personal superannuation provider whilst enabling us to deliver very competitive returns and fees”.
Suncorp Wealth division’s executive general manager James Gyton said his appointment to the fund’s leadership team would assist with the integration.
“This is an exceptional opportunity for us to bring together the experience and knowledge of people from not only two teams but two fund types to enable us to deliver a unique offering that provides members with the best possible outcomes,” Mr Gyton said.
Mr Gyton will join the fund’s executive team as the Chief Operating Officer for the SPSL business.
The future is here… using member reserves to buy scale, rather than using shareholder capital to buy distribution.