Corporate fund selects Mercer Super for SFT

One of the few remaining corporate super funds, the Goldman Sachs & JBWere Superannuation Fund, will be merged into Mercer Super from next month.

In September 2024, the trustee for the Goldman Sachs & JBWere Superannuation Fund - BEST Superannuation - commenced a review of its options to merge the fund, saying it was appropriate to do so while the fund remained in a "strong and robust" position.

It has now been confirmed that the fund, which was established in 1948, will undertake a successor fund transfer (SFT) and become a specialised sub-fund within the Mercer Super Trust.

In forming the decision, BEST Superannuation cited the changing regulatory landscape and associated increase in costs. It also noted the need to rotate its long-standing directors, most of which serve on the board voluntarily and some of which have done so for more than two decades.

The two also have a long-standing relationship, with Mercer having served as the fund's administrator for more than 20 years.

APRA data shows that, as at December end, the fund had total assets of $676 million. It has 1690 member accounts, about 720 of which are active. The median account balance is about $200,000.

The fund was also home to 32 defined benefit members with a lifetime pension entitlement. They have all already been transferred to the Challenger Retirement Fund.

Last year, a KPMG analysis found the Goldman Sachs & JBWere Superannuation Fund had some of the most expensive administration fees in the market, costing a total of $1326.

The merger process is expected to commence from May 20 and be completed in mid-June.

Mercer has taken over several other super funds in recent times, including the Holden Employees Superannuation Fund and TAL Super.

It's also currently offloading one of its offerings, transferring the Mercer Portfolio Service Superannuation Plan (MPSSP) to CFS Edge Super and Pension in the Avanteos Superannuation Trust. This plan has some $1.6 billion in assets and about 4460 members.

"In recent years there have been a number of new wealth platforms established as well as significant enhancements to platform features and flexibility. After a thorough review, we acknowledge we are unable to continue to enhance MPSSP in line with member needs without increasing fees," Mercer told members.

"Consequently, we believe it is in the best financial interests of members to transfer their accounts to CFS Edge."

It added that the move will give members access to a greater range of investments, an improved online experience, and a platform that can support complex arrangements at a competitive price. Fees will typically be lower, or members will benefit from grandfathered fee arrangements for two years.

Mercer Super declined to comment on the Goldman Sachs & JBWere Superannuation Fund merger.