Vision Super and Active Super merger
This page will be updated to reflect the current progress of the merger between Vision Super and Active Super.
This page will be updated to reflect the current progress of the merger between Vision Super and Active Super.
Vision Super and Active Super have signed a merger heads of agreement. The funds intend to merge to create a new, larger entity with around $27 billion in funds under management, 170,000 member accounts and a broader geographic presence across NSW and Victoria.
Vision Super Chair Lisa Darmanin and Active Super Chair Kyle Loades said: “Our two funds have a lot in common. The combined strength of a single fund across NSW and Victoria, with a focus on delivering strong retirement outcomes for members, will serve our members in local government and beyond for decades to come. We’ll be stronger together, without losing the focus of both funds on exceptional service and strong returns.
“It is exciting to be moving to the next stage of the merger process. Our funds share a common heritage in local government and remain committed to delivering sustainable, long-term returns for members.
“We’ve modelled the benefits of the merger, which found a range of synergies. Over time, combining the funds, streamlining our offerings and moving onto Vision Super’s internal administration platform will translate into lower costs, improved member services and innovative technology. We expect to see cost savings and greater economies of scale as time goes on. Those synergies will mean strong benefits to members of both funds.
Appointment of Chief Executive Officer
Stephen Rowe, Vision Super’s current Chief Executive Officer, has been appointed to the role of Chief Executive Officer of the merged fund. Both Chairs welcomed Stephen’s appointment.
“Stephen has been with Vision Super for nine years,” Lisa said. “Over that time, his focus on driving down costs for our members and achieving strong risk-adjusted returns has seen Vision Super become one of the most efficient super funds in Australia. Vision Super’s MySuper option is currently top quartile over all periods to 10 years, as well as ranked in the SR50 MySuper top 101 – and our MySuper fees and costs sit favourably in the lowest quartile according to APRA data.2
“On top of that record of strong performance and lowering costs, Stephen has experience with multiple transitions, and we are delighted to announce he will be leading the new fund. Stephen’s vision and drive will serve the merged fund well as we look to capitalise on our growth and cement our position as one of the best funds in the market.”
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.
Kyle said: “Donna is a well-respected member of the executive leadership team. She has been with the fund since 2010 and will continue to work with the Active Super Board and leadership team to oversee the completion of the merger process. We look forward to Donna’s continued contribution through transition and beyond.
“On behalf of Active Super I would like to congratulate Stephen on this appointment as we work to bring these two funds together. I would also like to offer my thanks to Phil Stockwell for his leadership as CEO of Active Super over the past three and a half years. Phil has successfully 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 we continued to deliver solid investment returns for our members,” he said.
Members will be kept informed as the proposed merger progresses, which is expected to be completed around mid-2024.
1 SuperRatings SR50 MySuper survey as at 30 April 2023
2 APRA Quarterly MySuper statistics March 2023, statement of fees and costs for a representative member with $50,000 account balance for all MySuper products.
A heads of agreement is a legal document that summarises the proposed terms of an agreement. In the case of a super fund merger, it signals that both funds have completed a due diligence process and agreed to merge. The final terms of the merger will be laid out in a successor fund transfer deed, which is the final legal agreement.
The merger remains subject to a range of conditions, including regulatory, legislative, and final Board approvals.
The Board’s role is to manage the fund in the best financial interests of members. This includes exploring partnerships that align with our goals and values, particularly given the changing superannuation landscape in Australia.
The super industry has seen immense regulatory change over the past few years and further changes are expected to occur that will make scale (the number of members in a fund and the value of assets managed by a fund) a critical factor in being able to continue to operate over the longer term in a way that ensures we are acting in the best financial interests of members. We have an obligation to you to consider the benefits of a potential merger and to proceed with that merger if it is in the best financial interests of our members.
The Vision Super Board believes that a merger with Active Super will deliver enhanced benefits, products and services, while maintaining low fees into the future and a sustainable and growing fund.
Fee arrangements for the merged fund will be decided during the transition process, but we anticipate a larger fund will mean fees are lower over time than they otherwise would be.
Your account isn’t changing. Whether you’re in Vision Super Saver, Vision Personal, one of our pension products or a defined benefit plan, all of your account details are staying the same. You’ll still have access to your online account as well as via the Vision Super app.
Your pension payments won’t change – you’ll continue to be paid your pension payments into your nominated bank account, at the same time. You’ll still have access to your online account as well as via the Vision Super app. You don’t need to take any action.
Nothing about your defined benefit will change. We know how important the defined benefit arrangements are to our defined benefit scheme members, and can reassure you that nothing about the operation of the scheme or your entitlements will be altered.
You don’t need to do anything – once transition is complete, the merger will take place and you’ll automatically be a member of the merged fund. We will communicate with you throughout this process.
The current fund (Local Authorities Superannuation Fund (LASF)) and trustee entity (Vision Super Pty Ltd) will continue – the Boards of both funds have determined that Vision Super Pty Ltd will be the ongoing entity. The Boards have not yet decided what the name of the merged fund will be, which will be done after assessing the brand value of both funds to determine the choice that is in our members’ best financial interests.
No, this is a merger of equals. Vision Super and Active Super are about the same size – Vision Super has around $12 billion in funds under management and 84,500 members and Active Super has $13.5 billion and over 80,000 members. Both funds have a deep history in local government, and run accumulation, defined benefits and pension products. We’ll be stronger together, without losing the focus of both funds on exceptional service and strong returns.
The Boards have not yet decided what the name of the merged fund will be, which will be done after assessing the brand value of both funds to determine the choice that is in our members’ best financial interests.
You can still contact us using our existing details:
Member services: 1300 300 820
Retirement services: 1300 017 589
8:30am to 5:00pm closed public holidays
Member email: [email protected]
Postal address
Vision Super
PO Box 18041
Collins Street East
Victoria 8003
You can still use your existing login details for the website and the app. To keep your money safe, we recently introduced two-factor authentication on the website, and are in the process of introducing it for the app.
All of our current services will continue to be available to you as we progress through the merger transition. The current contribution remittance channels and payment methods will remain.
Yes, we have no current plans to move offices, and you are still welcome to visit us Monday to Friday, 9am to 5pm (except Victorian public holidays).