Hostplus has been chosen as successor fund for about $210 million of member assets from AUSfund, as the latter closes its doors after 33 years.
AUSfund, which was set up as a fund for unclaimed or dormant superannuation funds, is owned by an Industry Fund Services subsidiary. IFS employed a small team of investments staff who invested AUSfund's roughly $1 billion in assets via external fund managers.
Effective May 21, AUSfund will cease to exist, after the federal government's legislation made it mandatory for superannuation to transfer low-balance or dormant accounts to the Australian Taxation Office.
AUSfund has decided to transfer member accounts with over $6000 to Hostplus after a tender process conducted pre-COVID. It will return the sub-$6000 accounts to the ATO.
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"We went through a competitive tender process pre-COVID but the SFT [successor fund transfer] was put on hold last year," Industry Fund Services chief executive Cath Bowtell told Financial Standard.
"Hostplus was the most competitive in terms of performance, costs, net returns but also governance, the health of fund and the way it is run.
"We estimate (subject to earnings over next month or so) that to wind up AUSfund we will transfer just over $210 million to Hostplus, and $730 million to the ATO."
AUSFund acted as the eligible rollover fund (ERF) for over 40 superannuation funds including both industry funds like AustralianSuper and UniSuper, and corporate funds like Qantas Super and Westpac Staff Super.
Hostplus had $47.8 billion in funds under management as at 30 June 2020.