Queensland will be home to Australia’s second-largest super fund with Sunsuper and QSuper completing a merger to create a $200 billion behemoth.
The deal needs final approval from Queensland Treasurer Cameron Dick, who is expected to give it a tick next week.
But he will make sure it is an all-Queensland affair.
Mr Dick is demanding the new entity be based in Brisbane, have a Queensland-based chief executive, and use the government’s Queensland Investment Corporation to manage state defined-benefit obligations.
The chief executive of the merged entity will be current Sunsuper CEO Bernard Reilly and current QSuper chair Don Luke will serve as its chair.
Current Sunsuper chair and former Queensland treasurer Andrew Fraser will remain on the board.
“I strongly believe that this merger will be in the best interests of our two million members and, as such, I am utterly sure stepping down is the right thing to do. I look forward to contributing to the success of this new fund through the transition, and beyond,” Mr Fraser said.
The board will be a large one, consisting of 13 members from both existing funds, which Mr Luke and Mr Fraser said would be an advantage.
“The board brings together directors from a range of backgrounds, each bringing sound judgement and strong commercial acumen, as well as unique skills that ensure diversity of thought and an ongoing culture of putting members first, which will define the merged fund from day one,” they said.
“The Palaszczuk government supports this proposal because it aligns with our vision to reinforce Queensland’s position as a preferred investment destination,” Mr Dick said of the merger.
Mr Fraser said the merger will create an “unquestionably strong” super fund that will be a pillar of the Australian superannuation industry.
“The fund will have its heritage in Queensland, and its HQ will be in Brisbane, but it will be a fund of clear national ambition and open to all Australians. With offices in Sydney and Melbourne we will build on our success to offer more Australians a better retirement,” Mr Fraser said.
QSuper began life as a super fund for Queensland public servants and Sunsuper is a local industry fund.
Together they will have almost $200 billion in assets and two million members, putting the new entity just behind AustralianSuper, which has just over $200 billion in assets and over two million members.
Aware Super, recently created from the mergers of First State Super, VicSuper and WA Super, has $140 billion in assets and 1.1 million members.
The New Daily is owned by Industry Super Holdings