![]() ![]() So let’s break it down into a the things that matter: 1. Fees Industry analysts and commentators agree that, in the future, the industry will be dominated by between six and a dozen big-brand mega-funds, which will vacuum up the vast majority of new entrants to the workforce. New regulations require funds failing to meet APRA’s performance tests to report their underperformance to members, while persistent underperformance will prevent them from signing new members. The recently passed Your Future, Your Super (YFYS) legislation will undoubtedly add impetus to the merger trend. ![]() Instead, funds realise their future will be sustained on delivering optimal retirement benefits to members at minimum cost. While their heritage might be rooted in industrial negotiations and agreements, they recognise that this connection will be less important in future. The external influences and pressures on funds to merge is introducing a new level of pragmatism on the trustee boards responsible for these funds. Some people have a strong connection with their fund through its association with the business sector in which they work, so the idea of merging with a fund in an entirely different sector can be puzzling, even confronting. ![]() A notification that your super fund is about to merge with another may come as a surprise to members whose fund has performed consistently well for many years. ![]()
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