By Kate Farrar, Chief Executive Officer, LGIAsuper
Published 14 June 2021
This is a great time to be an LGIAsuper member.
Our planned merger with Energy Super on 1 July 2021 is just a few days away. And in mid-2022 we expect to complete our acquisition of Suncorp’s superannuation business, Suncorp Portfolio Services Limited (SPSL).
When these transactions have been completed, the combined fund size should be around $28 billion, with approximately 250,000 members. Our funds under management will grow by an estimated 115% – that’s over double in size.
This increased size and scale can help us deliver better services and lower costs for all members once we have delivered the synergy benefits of these transactions. It can also give us access to a wider range of investment opportunities.
I am delighted that LGIAsuper will continue as a medium-sized boutique fund with a strong member focus. This has been so important to me and the team when planning the future shape of the fund.
The benefits we expect from our transactions are a continuation of the cost-savings we have already been able to pass on to members recently.
Further information about these fee and cost reductions is in our significant event notices.
LGIAsuper’s aim is to become an ideal and sustainable size for long-term growth – large enough to make worthwhile investments, and agile enough to respond quickly to changes in financial markets.
As we embark on this next stage of our growth, we will remain focused on delivering solid long-term returns to help our members achieve their retirement goals. This long-term focus has enabled us to achieve 7.66% returns for our MySuper option over the last 10 years (as at 30 April 2021)².
LGIAsuper will remain a profit-for-members fund, so our members will benefit directly from the cost-efficiencies that are coming. We don’t have any shareholders to pay – our members own the fund, so any profit is put straight back into the fund for the benefit of all our members.
By remaining as a medium-sized boutique fund, we can stay close to our members, understand what you need and provide a personal service. That’s what makes LGIAsuper different, and it’s what you are telling us you would like. Growing the fund can enable us to provide you with increased levels of support, education and advice, without losing the services we know you value.
We’re all working towards delivering the best possible retirement outcomes for our members. Coming together with Energy Super and SPSL over the coming months can help us achieve this.
This is an exciting time for LGIAsuper and all our members.
Our team of superannuation specialists and financial advisers are here to guide our members through this period of change and growth.
If you have any questions about LGIAsuper’s expansion plans or anything regarding your superannuation, please contact us on 1800 444 396.