ACB News, March 16, Queensland Treasurer Cameron Dick has announced the approval of the merger of QSuper and Sunsuper, bringing the two funds together to create Australia’s second largest pension fund.
QSuper and Sunsuper began talks on the merger in 2019 and signed a memorandum of understanding in March last year.
QSuper, which has about A $120bn in assets under management, and Sunsuper, which has more than A $80bn in assets under management, will jointly manage 2m member accounts and A $200bn in assets, making the new entity similar in size to AustralianSuper, which has about A $200bn in assets and 2.4m members.
Don Luke, chairman of QSuper, will be chairman of the new entity, while Bernard Reilly, chief executive of Sunsuper, will manage the new fund until at least December 2022, it is understood.
The Queensland Government’s support for the merger is subject to several conditions, including that the new entity should have appropriate government representation, maintain pension services for government officials, maintain protected defined benefits and related liabilities, and satisfy the requirements of key stakeholders. In addition, the new entity will be based in Brisbane at the request of the Queensland Government and will use the investment team of Queensland Investment Corporation to manage its existing fixed income scheme.
Both funds have performed well in the pension fund sector, with QSuper and Sunsuper voted the best fund of the year in 2020 and 2019 respectively, according to SuperRatings.