Fees drop after super mergers


Superannuation mergers have led to a 20% decrease in fees for fund members, according to research from Rainmaker Information.

This result is based on a detailed study of 13 mergers that occurred over the past three years involving 22 super funds that represent $410 billion in member's money.

Mergers have become more common since the findings of the Productivity Commission were publicly released in January 2019.

Of the 13 mergers, 11 were traditional mergers, while two were integrations of  super funds, being the combining of Virgin Super and Mercer Super Trust and the integration of the trustee offices of Catholic Super and Equipsuper.

In all 11 of the traditional mergers the more expensive fund's fees lowered, with an average decrease of 21%.

For the fund with lower fees in the traditional mergers, seven of the 11 saw their fees drop, a reduction of 5% on average.


"Mergers have created efficiencies and economies of scale for the funds, which has led to members being better off," said Alex Dunnin, executive director of research at Rainmaker Information.

"Regulators and political leaders continue to heap pressure on funds to merge, particularly if they lack scale or consistently under perform."

Nine of the 11 funds saw their fees drop or stay the same when comparing the average pre-merger fees against the post-merger fees.

Of these results the average fall was 14%.

However, of the two fund integrations, fees actually went up on average across the funds.

Dunnin said, "fees don't go down just because a super fund merges, they go down because the trustees redesign the product."

"Products are more likely to be redesigned in a merger but not when funds just combine their back offices."

Seven mergers occurred in the 18 months since the findings of the Productivity Commission were announced, compared to six in the two years prior.

Further to this, several other large-scale mergers have been announced since Rainmaker conducted this research, including:


On top of this, more details have been announced regarding the merger between MTAA Super and TasPlan.


  • NGS Super and Australian Catholic Super
  • CBUS and Media Super
  • The acquisition of MLC by IOOF, which could overtake the merger of First State Super, VicSuper and WA Super (to form Aware Super) as the biggest merger in Australia's superannuation history if it was to lead to the consolidation of their APRA-regulated superannuation funds.


Release published at - https://www.rainmaker.com.au/media-release/fees-drop-after-super-mergers

Business Business & Economy Money & Finance

Privately Submitted Article or Event :
See Above Article or Event for Address, Sunshine Coast Wide
Privately Submitted Article or Event
Showing 10+ recent articles for this business
Camping trips prove popular for families over school holidays with 72% Cabin occupancy, an increase on 2019 figures 20 October 2020 | A $170 million boost over school holidays for regional tourism, an indication of the important role campers can play in the country's recovery. More information...
Australian Sugar Milling Council says Premier's commitment to reduce water charges provides confidence boost to regional economy 26 October 2020 | The Australian Sugar Milling Council (ASMC) welcomed today's announcement from the Palaszczuk Government to cut irrigation water costs for Queensland's sugarcane growers by 15 per cent for three years from July... More information...
Queensland Conservation Council's Path To A 100% Renewable Queensland 14 October 2020 | "Queensland actually has a multitude of options for how it might achieve 100% renewable and reliable and affordable electricity supply." -Tristan Edis, Green Energy Markets. More information...
eSafety Commissioner take down scheme addresses social media harm, but not the cause 12 October 2020 | Forcing social media giants to remove harmful abuse against Australians needs to be matched with meaningful regulation that reins in the tech platforms, according to Responsible Technology Australia. More information...
Mooloolah Valley local wins prestigious tech award 09 October 2020 | Dr Hacker, from the Mooloolah Valley, is a world-leading postdoctoral researcher in the skin cancer field at the Institute of Health and Biomedical Innovation at the Queensland University of Technology. More information...
Sunshine Coast local shines at prestigious tech awards 09 October 2020 | Sunshine Coast resident Dr Jodi Neal has taken home the top prize in the Rural, Regional & Remote Award at the prestigious Women in Technology (WiT) Awards held tonight, 9 October 2020. More information...
Could Thursday's $40 million draw crown 2020's 10th Powerball division one winner? 14 October 2020 | No one ever dreams of coming tenth, unless you score a $40 million Powerball prize this Thursday and become the game's tenth division one winner for 2020. More information...
What does the federal budget mean for the Australian housing market? 08 October 2020 | Three major housing-related measures were highlighted in Treasurer Frydenberg's budget address on the 6th of October: an extension of the First Home Loan Deposit Scheme (FHLDS), additional low-cost financing for... More information...
Budget fail: no further support for regional or community media 07 October 2020 | We were hoping that in last night's Budget the Morrison Government would take vital action to provide ongoing support for the regional and community media outlets that are struggling for survival because of the... More information...
Outpouring of local support delivers major milestone for Queensland Brew 07 October 2020 | Noosa Surf Club General Manager, Anton Mogg said they had been pouring Great Northern at the Sunshine Coast club for the past decade. More information...

comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service