The $1.4 billion Brisbane retail superannuation fund will drop individual branding of two funds it acquired in 2018, as it aims to reduce expenses over next three years.
AMG Super, which is partly owned by DDH Graham, has so far run the $140 million Emplus Super and $300 million Freedom of Choice Super as standalone divisions of AMG.
"We are in a process of a significant product consolidation project. Emplus is the first part that is rebranding [effective February 19], but the plan is Freedom of Choice division will also merge into AMG division. Consolidating the different products into one main division - that just helps in terms of efficiencies," AMG Super chief executive Alan Hegerty told Financial Standard.
Hegerty said AMG initially kept the funds' branding intact because they had their own member niches. Emplus was initially primarily used by the childcare industry, while Freedom of Choice is an adviser product.
"At the time those brands had their own loyalty and recognition in their relevant areas. Over the course of last two years, we have undertaken to make those members aware of the fact that they are a part of AMG. So the timing is right to make a transition," Hegerty said.
He said the goal is to lower AMG's expenses by 17% over the next three years. However, he declines to comment on current expenses.
AMG Super had about 24,222 members as at 30 June 2020, after falling 9% in the year. It has about 15,000 members now, after consolidation of lower-balance accounts.
The fund currently has a three-year agreement with its group insurer Hannover Life Re, which will continue to insure its members before its planned pull back from the superannuation group insurance market in Australia.