Hospitality super heavyweights Hostplus and Intrust to merge

Australia’s leading hospitality industry super funds Hostplus and Intrust Super have signed a deed to merge in a huge shake-up for the sector.

Both Hostplus and Intrust Super are consistently recognised as two of the best performing funds in Australia and the merger, expected to be completed by November 26, 2021, will create a ‘mega fund’ that will be a huge boost to the hospitality industry.

Hostplus CEO, David Elia, said the merger represents “a significant and positive milestone for the funds and their respective members, contributing employers and stakeholders”.

“We are delighted today, to have formally entered into an agreement with Intrust Super to merge our two funds to create a truly national fund of greater size and scale,” he said.

Hostplus CEO, David Elia

“As such, we wholeheartedly look forward to welcoming Intrust Super’s members, employers and staff into the Hostplus family.

“A significant amount of work has preceded today’s announcement. Both funds continue to approach this merger with enthusiasm and pride; and both funds have a deep respect for each other’s distinctive achievements, performance track-record and for-member profit ethos and values,” Elia said.

When you crunch the numbers, the merger is significant in many aspects. Hostplus has over 1.25 million members, 233,000 contributing employers and AUD$66 billion in funds under management, while Intrust Super has over 90,000 members and 25,000 contributing employers, with approximately AUD$3 billion in assets under management.

“While today is an important occasion for both of our organisations, we will remain focused on ensuring our merged fund continues to deliver high-quality products and services, investment performance and retirement outcomes for our combined 1.3 million members and their families,” Elia said.

Intrust Super CEO, Brendan O’Farrell.

Intrust Super Chief Executive Officer, Brendan O’Farrell, said today’s merger announcement “served as a practical demonstration of two highly respected and well-performed funds electing to combine their competitive advantages for the benefit of members”.

“The collective and shared heritage and core traits of Intrust Super and Hostplus forms a solid foundation for what we expect will be a great union of our funds,” he said.

“The merger to be completed later this year, places the best interests of both funds’ combined members at the forefront of our approach to ensuring continued growth, competitiveness, sustainability, and success.

“The continued growth of Hostplus will help to further secure strong retirement outcomes for Intrust Super members now, and into the future.

The merger has been described as “a significant and positive milestone for the funds and their respective members”.

“In executing the Successor Fund Transfer Deed with Hostplus, we are actively working to bring enhanced services and benefits to our members and employers.

“At the same time, we recognise and respect the core sectors that many of our combined members passionately and tirelessly work within.

“The merged entity will enable a strong, continued focus on those sectors,” O’Farrell said.

The organisations said both members and employers will shortly receive further and more detailed information relating to the expected merger benefits, the process to complete it and relevant next steps and actions.