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Consolidation continues: Food industry fund folds into STA
Indicating further consolidation within the industry superannuation funds sector, the $135 million, 20,000 member Food Industry Superannuation Trust has confirmed an “in principle” decision to merge with the big Superannuation Trust of Australia (STA).
The merger will be accommodated within a new division within STA to be called STA Food and Confectionary Super.
Announcing the move in late July, Food Super chairman Graeme Heath confirmed the decision had been driven by the changing regulatory environment.
He said the trustees had recognised the need to respond to the changing market and regulatory environments, particularly in circumstances where both employers and members were expecting the delivery of better services and benefits.
“With this move we will be better able to cater for our stakeholders with an extended range of products and services,” he said.
The chief executive of STA, Mark Delaney, said the move reflected the increasing consolidation in the superannuation market, with many small to medium-sized funds seeking strategic relationships with large providers to deliver better service to their members and their employers.
“The combination of increased cost pressures and higher service expectations is putting many funds under strain,” he said. “STA is working with a number of funds, both corporate and industry, to facilitate a wider service platform.”
Delaney said that under the new arrangements, STA would establish a discrete Food and Confectionary Super division with its own advisory committee with effect from November 1, this year.
AUTHOR
Mike Taylor
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