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The board of Qantas Super is considering the future of its $8.4 billion employee super fund, with a meeting scheduled to take place on Thursday.
Sources familiar with the plans who were not authorised to speak publicly said Qantas Super is the latest non-for profit super fund to consider merging its assets with a larger fund.
Qantas Super is an 80-year old fund which manages the retirement savings of its employees. Credit: Bloomberg
Qantas Super, chaired by John Aitkin, has been exclusively used by 26,000 Qantas employees and their spouses since 1939.
It outsources its administration services to Mercer, a major retail super fund. Mercer manages all Qantas Super’s member data, transaction processing and call centres.
Qantas Super manages $8.4 billion in assets as of June 30, an improvement from three years of asset reduction in the prior years. In 2022, total assets reduced by $472 million to $8.15 billion.
Qantas Super said its trustee board has made no decision to explore Qantas Super with another superannuation fund. Sources with knowledge of the plans said the group is looking to formally consider its merger options.
“The Trustee regularly reviews its strategy to develop a view as to the most appropriate strategic pathway for Qantas Super to enable it to deliver the best outcomes for members,” a spokesperson for Qantas Super said.
“The Trustee is acutely aware of the privilege and responsibility it has in managing the superannuation and retirement savings of Qantas Super’s members and will always put members’ best financial interests first.”
Qantas Super is one of three remaining corporate super funds, down from 17 before the onset of COVID-19 and more than 500 in the early 2000s.
The Australian Prudential Regulation Authority– which assess the performance of super funds– has been calling for smaller funds to consider merging with bigger ones to improve efficiency for some time.
“We know that size and scale is an important feature of efficiency, performance, and lower fees,” the chair of the super fund watchdog Margaret Cole told the House of Representatives standing committee on economics in June.
The authority released its report card for superannuation products last month, which revealed about 64,000 accounts holding $4.2 billion in assets had underperformed against set benchmarks for fees.
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