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Qantas reveals $9 billion superannuation move

Qantas Super will be acquired by Australia’s second-biggest superannuation fund.

Tamika Seeto
·Finance Reporter
Updated ·2-min read
Qantas
Qantas Super has about 26,000 members and $9 billion in funds under management. (Source: AAP)

Qantas Super has announced plans to merge with Australian Retirement Trust (ART), one of the country’s biggest super funds. The move will impact the super funds 26,000 members and approximately $9 billions in funds under management.

Qantas Super has been used exclusively by thousands of Qantas employees and their spouses since 1939. ART itself created from a merger between QSuper and Sunsuper in 2022.

The move means ART will continue to close in on rival AustraliaSuper, the country's biggest fund with $335 billion under management. It follows a series of recent mergers, with corporate funds AV Super, Woolworths and Endeavour Group, Commonwealth Bank Group Super and Alcoa Super joining ART last year.

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ART chair Andrew Fraser said the last financial year had been the biggest year of transitions for the fund.

“Not only does this cement our position as an industry leader in the merger and transition space, but it is evidence that trustees and corporate Australia are choosing us and we are incredibly proud of this,” Fraser said.

Qantas Super chair John Atkin said the board took the decision to merge with ART “extremely seriously”.

“We believe that ART will be the right partner to help our members feel confident in their financial future so they can look forward to retirement,” Atkin said.

Do you have a story to share? Contact tamika.seeto@yahooinc.com

Qantas Super was among the best-performing funds in the market last year, according to Chant West data, with its growth strategy returning 10.1 per cent.

It was behind Mine Super Growth, Colonial First State FirstChoice Growth and IOOF Balanced Investor Trust which returned 10.7 per cent, and Brighter Super Balanced which returned 10.6 per cent.

The median growth fund returned 9.1 per cent for the 12 months to June 30, according to the research house.

The number of funds managing Australia’s $3.9 trillion superannuation sector has been shrinking. In 2004, there were 761 corporate super funds and as of June 2022, there were just 11 corporate funds remaining.

Mercer predicts only 77 super funds will exist within four years, dropping from the current 107 now and 232 in 2015.

By merging with ART, Qantas said its members will have access to a broader choice of investment options.

Given the size of ART, most members will benefit from lower fees and costs. They will also have access to a broader range of member support and services compared to Qantas Super.

There are still various legal checkpoints to go through before the merge is complete. Qantas Super said it could take up to 12 months to fully implement.

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