Heads of Agreement FAQ | Active Super

ACTIVE SUPER AND VISION SUPER SIGN HEADS OF AGREEMENT

7 June 2023

If the merger proceeds, it is expected to be completed in mid-2024.

We will keep members informed as the matter progresses and we remain committed to providing high quality services throughout the merger process.

The signing of a Heads of Agreement demonstrates a firm commitment from both funds to proceed with a formal merger following the successful completion of the initial due diligence phase.

A Memorandum of Understanding occurs when both funds agree to undertake due diligence and work together to explore the commercial and member benefits of a potential merger.

Vision Super is aligned with our core values and beliefs and this should ensure that a potential merged fund continues to deliver solid long-term returns in order to maximise members’ retirement outcomes.

Active Super and Vision Super have a similar history as super funds servicing current and former local government employees in their respective states of NSW and Victoria.

Operationally, both funds share a commitment to responsible investment, deliver strong investment returns and have a commitment to customer service by hosting inhouse contact centres and delivering regional service to members and employers. The funds are also of a similar size and have approximately the same amount of funds under management.

The CEOs of both funds are highly regarded by the respective Boards. The internal selection process was conducted by a sub-committee comprised of Board members of both funds.

Stephen Rowe, CEO of Vision Super, has been selected as the CEO of the combined fund should the merger be concluded.

As CEO of Active Super, Phil Stockwell has overseen substantial change in a short period of time. He led the fund through COVID, delivered a successful rebrand to Active Super (from Local Government Super), and returned the fund to net member growth while it continued to deliver solid investment returns for our members.

The current Active Super CEO, Phil Stockwell, will be leaving the fund and Active Super Deputy CEO, Donna Heffernan, will become Acting CEO until the merger is complete. Ms Heffernan has been with the fund since 2010 and will continue to work with the Active Super leadership team and the Board to oversee the completion of the merger process.

It is too early to say which brands will be retained and this will be worked through as part of the merger discussions with Vision Super.

Active Super remains committed to providing high-quality services to its members throughout the merger process.

Our ambition has always been to grow our membership by delivering great investment returns and services to our members and considering this merger opportunity is a part of that growth strategy.

We believe that a merger will allow us to improve member services and potentially lower fees so that we can compete more effectively in a rapidly changing superannuation market.

It is too early to determine this, but we expect there to be increased efficiencies that result from the increased scale of combining two funds.

Members do not have to take any action. There are still a number of steps to be undertaken before the merger is completed. If the merger proceeds, it is expected to be completed in mid-2024.

The superannuation industry is very highly regulated and a merger opportunity needs to satisfy several tests before being agreed to by the relevant Trustees. One of these tests is that the merger would need to be in the best financial interests of its members. This determination will be made by the Trustee having regard to independent expert advice.

Due to these requirements and considerations, a merger decision cannot be made by members. However, members are considered at each and every stage of this process and we will endeavour to keep our members informed of its progress.

Yes. Active Super is a proud responsible investor. Both funds are committed to remaining ESG-focussed with responsible investment as a core philosophy.

Yes. This is a potential merger of equals where we are choosing to come together as two highly successful, financially strong industry super funds, dedicated to our members' best financial interests.

Throughout the merger process, Active Super will continue to invest, service members and operate efficiently in order to deliver results and solid long-term returns for members. Your super will continue to be managed carefully with members’ best financial interests in mind.

Yes, we remain committed to the delivery of quality service to all our members in city and regional locations across NSW.

Should a merger occur, the merged entity will continue to manage members’ superannuation responsibly and aim to maintain regional support and service to our members. This is an integral part of what we do so it is critical that connections are maintained with all our members, councils, employers and stakeholders.

Members can call the Member Services Centre on 1300 547 873 or +61 2 9333 3000, weekdays between 8.30am and 6.00pm or seek information through the online chat service.

We will keep you informed as the matter progress.

ACTIVE SUPER AND VISION SUPER SIGN HEADS OF AGREEMENT

Frequently Asked Questions