POWERED BY MOMENTUM MEDIA
Future Group expands super footprint
Future Group has welcomed $2.7 billion fund GuildSuper into the fold, growing its funds under management and advice to more than $13.4 billion.
The transaction was approved by the Victorian Supreme Court on 30 October and is expected to settle in December.
Ahead of this, the trusteeship of the Guild Retirement Fund will transition from Guild Trustee Services to Equity Trustees Superannuation Limited (ETSL), which manages all of Future Group’s products.
GuildSuper, the super fund for the pharmacy and childcare industries, has just shy of 100,000 members who are expected to benefit from a reduction in administration fees through the transaction. It also includes Child Care Super, a separate brand that operates within the same fund.
Guild Group chief executive, Paul Cassidy, said the fund looks forward to the numerous member benefits stemming from consolidating its super offering under Future Group.
“We see a values alignment with Future Group. Under Future Group, GuildSuper will continue to support the healthcare and community service sectors and continue to prioritise the financial futures of women and their families,” he said.
Terming the transaction a “milestone” for Future Group, its CEO and founder, Simon Sheikh, observed the group will now be supporting over 383,000 members across four brands: GuildSuper, Child Care Super, Future Super and smartMonday, which it acquired from global insurer Aon in 2022.
“This makes us one of the top 15 largest superannuation groups by number of members served,” Sheikh said.
The partnership is expected to provide a pathway to a sustainable future for both funds, delivering improved outcomes for members via reduced fees, expanded investment capability and increased services such as intra-fund advice.
Sheikh added: “As Future Group continues to grow and scale our focus is on ensuring we can improve outcomes for members. Centralising administrative and back-end operating functions drive these member benefits.”
In the lead-up to this acquisition, Future Group completed a successful capital raise, securing some $15 million in Series C funding. Notable investors include Dominic Pym, Ellerston Capital and Understorey Ventures.
Sheikh believes the success of this capital raise marked a vote of confidence from investors.
He said: “Australia’s superannuation sector needs a firm with a solid growth plan to compete with the big funds. As a values-driven firm we look forward to continuing to be that competitor.”
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
