28 April 2021
Q: Why is LGIAsuper acquiring SPSL?
This transaction is the latest milestone in LGIAsuper’s plan to grow and improve the fund, and to ensure its long-term sustainability and performance for members.
LGIAsuper’s acquisition of SPSL will increase our fund’s size and scale, enabling us to deliver greater efficiencies, and ultimately lower operating costs and reduce fees.
LGIAsuper’s due diligence process has confirmed that the acquisition of SPSL is in the best interests of our members.
Q: Who is SPSL?
SPSL is the superannuation trustee for Everyday Super, Brighter Super, and Suncorp Employee Superannuation Plan. SPSL has $6.4 billion in funds under management and 137,000 members (as of 30 December 2020).
SPSL has been delivering superannuation and retirement products for more than 20 years. Further information is available on Suncorp’s website.
Q: Will this transaction increase the size of the LGIAsuper fund?
Yes. On completion of our acquisition of SPSL and our merger with Energy Super, our combined fund size should be around $28 billion, with approximately 250,000 members.
Q: What are the benefits for LGIAsuper members?
This transaction will increase our fund’s size and scale. Over time, this should provide our members with the benefits of increased investment opportunities, lower investment and administration fees, and greater scope to enhance products and services.
LGIAsuper will still be a mid-sized, boutique and profit-for-members fund committed to personalised member services. We would have greater size and scale to serve our members, reduce costs and maximise returns without sacrificing what makes us different.
Q: Is this acquisition in the best interest of members?
Yes, LGIAsuper’s due diligence process has confirmed that the acquisition of SPSL is in the best interests of our members.
Q: Will there be any changes to my membership?
No, this transaction will not change your membership. You will continue to receive the same level of service and performance that you have always experienced as an LGIAsuper member.
Q: Will LGIAsuper's fees change?
One of the long-term aims of this transaction is to use the fund’s increased size and scale to reduce our investment and administration fees.
Q: Will LGIAsuper remain a profit-for-member fund?
Yes, LGIAsuper will remain a profit-for-member fund.
Q: Will LGIAsuper remain the fund of choice for local government?
Yes, LGIAsuper remains committed to local government and continuing to provide face to face services right throughout Queensland local government workplaces.
Q: How much has LGIAsuper paid for this acquisition?
The total consideration for the acquisition is estimated at $45 million. This includes a fixed amount of $26.6 million, plus regulatory reserves.
Q: Is LGIAsuper spending members' retirement funds in this transaction?
No. The transaction will be funded from LGIAsuper’s general reserve. This is expected to be recouped by members within five years and, in addition, would deliver medium-term fee benefits.
Q: What are the next steps in the acquisition process?
The acquisition is planned for completion in the second half of the 2021/22 financial year.
This will be followed by a 12- to 18-month transition period.
Q: Will LGIAsuper members be asked to vote on the purchase?
No, this is not required. The obligation is for the Board to determine that this purchase is in members’ best interests, and this step is now complete.
Q: What will happen to the brand? Will there be a new name?
Corporate and product branding will be determined during integration planning over the next 12 to 18 months.
Q: Is this related to LGIAsuper's merger with Energy Super?
No. This transaction is separate from the planned merger of LGIAsuper and Energy Super. We are progressing well towards our planned merger date of 1 July 2021.
Q: How can I find out more?
We will continue to publish updates about the acquisition on our website.
Communications are also being sent to LGIAsuper and SPSL members to keep them informed.