Hostplus and Statewide Super today announced the finalisation of their merger, resulting in more than $81 billion in funds under management (FUM) and 1.5 million members.
The merger now places Hostplus in the top five largest superannuation funds by membership and top ten by FUM.1 Chief Executive Officer David Elia says the continued plans for growth and increased scale position the fund for enhanced member benefits.
“This is another important and incredibly exciting milestone for Hostplus. Our focus is on continuing to deliver exceptional outcomes for our expanded membership, including market-leading returns – especially from our MySuper Balanced option which is ranked number one for net investment performance over 7, 10, 15 and 20 years".2
“Over the past 24 months Hostplus has experienced exponential growth with a 22 per cent increase in membership and 58 per cent increase in FUM.3
“Our upcoming merger with $6 billion fund, Maritime Super, in addition to organic growth, means we can reasonably expect to reach $100 billion in FUM in 2023.
It was this drive to deliver members’ benefits which led the Board of Statewide Super, chaired by Independent Chairman Ken Williams, to choose Hostplus as its merger partner, after considering a number of funds who courted the high-performing South Australian fund.
The member-facing Super Hub in the heart of the Adelaide CBD will remain and Statewide Super members will benefit from extended phone and online servicing, from 7.30am-7.30pm ACST Monday to Friday. Servicing by local staff in South Australia and Northern Territory will also remain.
Reflective of Mr Elia’s stance that this is “a merger in the truest sense of the word”, almost 98 per cent of Statewide Super employees chose to join the Hostplus team post-merger.
“I look forward to warmly welcoming Statewide Super members and employees to Hostplus,” says Mr Elia.
Mr Elia says the successful transition of around 150,000 members from the self-administered Acurity platform, into Hostplus’ Link Group environment, included members with defined benefit products.
"This positions the fund well for future mergers. The ability to service defined benefit members will further broaden our appeal and suitability as a merger partner and I am confident this will contribute to our ongoing growth as a fund,” says Mr Elia.
Hostplus will acquire an additional 122,744 members in South Australia (133 per cent increase) and 10,630 in the Northern Territory (60 per cent increase).4 Importantly, this includes members from the local government and public sectors, cementing its position as a truly national, multi-sector industry fund.
Hostplus would like to acknowledge and congratulate outgoing Statewide Super chief executive officer, Tony D’Alessandro, and the Statewide Super Board, on a professional and seamless transition, delivered in the best interests of members.
1 Source: APRA Fund level superannuation statistics, June 2021.
2 Source: SuperRatings Accumulation Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, 31 December 2021.
3 Source: Hostplus
4 Source: Hostplus and Statewide Super
The information in this article is correct as at the time of publication.