Lutheran Super will merge into the Mercer Super Trust via a successor fund transfer later this year.
Lutheran Super Chair John Grocke said the move would broaden services, options and support for members of the $700m-plus not-for-profit fund, which was established by the Lutheran Church of Australia in 1987 to enable church employees to plan for their retirement. Any LCANZ member was able to choose Lutheran Super as their superannuation fund from July 2019, when it became a public-offer fund,
Mr Grocke said the merger, which was announced last week by Mercer Super and Lutheran Super, was in the best financial interests of Lutheran Super’s 5,700 members, including more than 300 pensioners.
‘From the outset, we have sought a merger partner that could deliver the best retirement outcome possible for our members’, Mr Grocke said.
‘Following a rigorous process, we’re pleased to have chosen the Mercer Super Trust, where our members will access a wider range of services, options and personalised support to get the most out of their super or pension. Importantly, the merger will ensure that members continue to benefit from our tailored balanced investment option as well as other characteristics of the existing plan.’
Lutheran Super’s Balanced Growth (MySuper) option has performed strongly against its peers over the past five years, exceeding the MySuper median by 0.67 per cent per annum. In October 2021, it was named as one of the Top 10 growth funds by Australian online investment advisor Stockspot. It will continue as the MySuper option for Lutheran Super members in the Mercer Super Trust.
‘From strong investment performance to competitive fees, we’re proud of what we have achieved on behalf of our members over the years’, Mr Grocke said. ‘We know that our members’ best interests will continue to be protected as they join Mercer Super.’
Mercer Super Chief Executive Officer Tim Barber said the firm, which has provided administration, investment management and consulting services for Lutheran Super over many years, looked forward to continuing its service to members.
‘Mercer is proud of its long-term partnership with Lutheran Super’, he said. ‘We know well the deep commitment they have to helping their members enjoy a healthy retirement, and we look forward to welcoming them to Mercer Super.’
The successor fund transfer is expected to take place in the final quarter of 2022.
The Mercer Super Trust currently manages more than $30 billion in funds and leverages the scale of Mercer globally, which has US$346 billion in assets under management. Upon completion of the Lutheran Super successor fund transfer and the recently announced successor fund transfer of BT Super, the Mercer Super Trust will have more than $65 billion in funds under management.