OneSuper to take on more super products

Following on from the news that it would now be home to Spaceship Super, OneSuper will further bolster its funds under management through the transfer of another sub-plan, home to several super products.

Last week, Financial Standard reported on Diversa's decision to merge Spaceship Super into OneSuper via a successor fund transfer. The move will add about $773 million to OneSuper's $4.5 billion in funds under management and 21,340 members.

Now, the trustee has confirmed it will also transfer the Professional Super sub-plan on June 1.

Professional Super is home to several superannuation products, including Cruelty Free Super, Engineering Super, Professional Super (formerly MobiSuper), and Student Super. According to APRA data, the products have a combined FUM of about $418 million on behalf of about 32,000 members.

In explaining to members of the various products, Diversa said: "APRA is actively encouraging mergers between superannuation funds, where the merger is considered to be in the best financial interests of members."

"Mergers result in larger funds which can promote greater efficiencies for their members and ultimately lead to improved member outcomes. That is why, following a detailed due diligence process, the Trustee has decided to transfer members' benefits to a new sub-plan of OneSuper."

As with the Spaceship transfer, members of Engineering Super, Professional Super and Student Super will also see immediate savings on administration fees and costs that will outweigh an increase in investment fees.

They will continue to pay a flat dollar-based admin fee or $78 a year, however the percentage-based fee will reduce from 0.926% to 0.489%, making a saving of 0.437%. However, investment fees on all options will increase 0.095%.

As an example, a member with an account balance of $50,000 invested in the Balanced option will now pay $244.50 in administration fees, instead of $463, but $79 in investment fees instead of $31.50. However, overall they will go from paying an estimated $572.50 to $401.50.

These sub-plans are also making changes to their loyalty fee discounts and investment fee rebates for members with less than $1000 in their account.

For Cruelty Free Super members, Diversa has confirmed there will be no change to the ethical values of the product and the screens used will not change. However, it is introducing new single asset class investment options from June 1 - Australian shares, international shares, and cash. Currently, it simply operates the Cruelty Free Growth option.

Their fees will also be reduced. Currently, Cruelty Free Growth charges a dollar-based admin fee of $52 and percentage-based fee of 0.665%. While the dollar-based component will increase to $56 across all the new option, the percentage-based fee is dropping to 0.492% - a change of -0.173%. The investment fees across all options will also be higher than the current Growth fees, however the savings are still greater, Diversa said.

Cruelty Free's Baby Bump refund program is also being discontinued from June 1.