POWERED BY MOMENTUM MEDIA
LGsuper and City Super merger takes shape
The final picture of the merger of LGsuper and City Super is starting to take shape, with decisions made about the new fund’s name, board, mandates and products.
The two Queensland local government funds will officially merge as of 1 July, 2011 with the new fund to retain the LGsuper name.
LGsuper chief executive David Todd says this decision was made “due to its clear identification with the fund’s core membership of local government employees”.
Todd also revealed that the merged fund would be internally administered, which will mean the loss of the City Super administration mandate for Mercer.
City Super’s asset consultant JANA will be replaced by Towers Watson for the newly merged fund, while advice and insurance will be reviewed in 2012.
In the meantime, insurance providers AIA Australia and OnePath will continue to cover group life for members of LGsuper and City Super respectively.
Decisions surrounding the make-up of the board of directors have also been made, with a transitionary board to be put in place from 30 June, 2011 until 30 June, 2014.
The board will be made up of the existing LGsuper board of three employer directors, three member directors and an independent chair, as well as the addition of an employer director and member director from City Super.
On the product side, changes to default investment options will occur from 1 July this year.
Members up to age 75 will go into the diversified growth option, while members past aged over 75 and over will move to the conservative balanced option.
This decision was made based on trends for longer working careers and periods in retirement, said Todd.
AUTHOR
Ashleigh McIntyre
Recommended for you
The Super Members Council has outlined a bold reform plan to boost productivity, lift retirement savings, and unlock super’s full potential.
Women beginning their careers in 2025 could retire with hundreds of thousands of dollars more in super due to the 12 per cent super guarantee rate, HESTA modelling shows.
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
