By Kate Farrar, Chief Executive Officer, LGIAsuper
Published 26 February 2021
Things are looking up. Our economy is opening again, border restrictions have eased with occasional snap lockdowns working well, and unemployment is falling.
Vaccine rollouts have started in Australia and worldwide. As countries gradually emerge from their lockdowns, global trade and confidence are rebounding.
I am encouraged by how well Australia has dealt with the impacts of COVID-19. We have also benefited from the rapid recovery of China, our largest export partner. Whilst both countries have trade disputes in some sectors, our mineral exports are playing an essential role in our economy’s recovery.
All of this will be welcome news for LGIAsuper members. Whilst nothing is certain in these volatile times, we are now in more optimistic times.
LGIAsuper has come out well in a recent assessment of all super funds’ performances by industry regulator Australian Prudential Regulation Authority (APRA).
APRA recently published the second annual MySuper Product Heatmap¹, an assessment of all MySuper products in Australia. The report identifies underperforming products across three areas: investment performance, fees and costs, and sustainability of member outcomes.
I am delighted to report that LGIAsuper was one of 12 super funds that did not have any underperforming areas. This will be reassuring news for our members.
APRA’s report is helping to improve transparency across the superannuation industry. I am proud that we are being recognised for delivering positive member outcomes.
LGIAsuper and Energy Super are progressing well with preparations for our proposed merger.
The Boards of both funds have approved for the deal to proceed to completion on 1 July 2021. Both boards have signed a binding Heads of Agreement, which follows a mutual due diligence process uncovering the benefits of a merger for the funds’ combined members.
This merger would create a $20 billion fund with approximately 120,000 members. We envisage that the benefits to members will include:
We would still be a medium-sized, boutique and Queensland-based fund. We would remain close to our members, but with greater size and scale to serve our members, reduce costs and maximise returns.
You can read more in our news article on the merger plans.
LGIAsuper has started the year with high ratings from two of our industry's independent research and rating companies, Chant West and SuperRatings².
SuperRatings has awarded a Platinum rating to LGIAsuper’s Accumulation and Pension accounts – both for the 13th year in a row. It has also awarded a Platinum rating to LGIAsuper’s MySuper product, for the eighth year in a row.
This rating is recognition for being ‘a best value for money’ fund that is well balanced across all assessment criteria – investments, fees and charges, insurance, member servicing and administration in a robust, secure and proven governance/risk framework.
This year’s 13th consecutive ‘Platinum’ rating was very pleasing, as it showed that even in a year of volatility, we were able to continue to deliver for our members.
Chant West has awarded a ‘5 Apple’ rating to LGIAsuper’s Accumulation and Pension accounts. This rating indicates a ‘highest quality fund’ and is based on an assessment of our investment performance, member services, fees, insurance and organisational strength.
We pride ourselves on being member-driven and results-focused. These high ratings are a good indication that this is what produces the best member outcomes. We will continue to keep our members’ interests at the heart of every decision we make in 2021.
As always, our team of superannuation specialists and financial advisers are available to help you.
If you would like to discuss ways your superannuation, insurance or investment option, please contact us on 1800 444 396.