Equip merger reduces member fees by $12 million
Superannuation | 16/07/2018 |
5 min read
Good news! Equip’s 75,000 + members will benefit from more than $12 million in fee reductions over the next year, thanks to the continued benefits of the merger with the Rio Tinto Staff Superannuation Fund.
Equip’s Chief Executive Officer, Nicholas Vamvakas, noted that the new reduced fees, effective from 1 July 2018, represented the second round of reductions since the fund merger in July last year.
“This is an outstanding result for members. The homework we and the trustees of the Rio Tinto fund did ahead of the merger identified that we would achieve substantial savings that would benefit the members of both funds,” he said.
“I am pleased to say that the reductions occurring from 1 July are absolutely aligned with the analysis. Fee reductions passed onto members next year will amount to around $9 million, while insurance premium reductions will be around $3 million.
“What is more, we believe that those reductions will be sustainable given similar operating and market conditions in the years ahead,” Mr Vamvakas said.
He added that the latest results follow 12-months work consolidating and streamlining member accounts, and the flow on benefits this provides.
The merger benefits aligns with the fund's strategic vision for growth. “We still believe in the benefits of scale and we are continuing to explore opportunities for more mergers and additional corporate superannuation plans. We expect these will be by far the biggest contributors to our growth in the foreseeable future,” Mr Vamvakas said.
All Equip members will be issued with their annual summaries in August.