Kyle Loades

Active Super and Vision Super have signed a Memorandum of Understanding (MOU) to explore a potential merger and will undertake due diligence to determine if a merger is likely to be in the best financial interests of members of both funds.

Active Super and Vision Super are both profit-to-member funds of a similar size that have a common history servicing current and former local government employees in their respective states of NSW and Victoria.

If a merger proceeds, the fund will manage around $26 billion in funds under management on behalf of members holding around 169,000 accounts.

Kyle Loades, Active Super Chair, said: “These merger discussions represent an opportunity to bring together two funds with a similar membership profile and an aligned responsible investment philosophy, delivering strong, long-term returns and quality service to their members.

“By exploring this potential merger we have an opportunity to achieve additional scale, greater resources for services and growth, as well as potential lower costs and fees for members. Our aim is to put all members in a better position when it comes to meeting their retirement objectives.

“Active Super is a proud responsible investor that delivers strong returns to our members. We are one of six Australian funds to be certified carbon neutral by Climate Active and we have won the SuperRatings Infinity Award seven times for our commitment to environmental and ethical responsibilities,” he said.

Active Super, formerly known as Local Government Super, was established in 1997 and manages around $13.8 billion in net assets for over 85,000 member accounts. It has been open to the public since 2009.

Vision Super was founded in 1947 for Victorian local government and authorities’ workers. Vision Super’s net assets are around $12.4 billion for over 84,000 member accounts. It has been open to the public since 2006.

The post Active Super and Vision Super Sign Merger MOU appeared first on AdviserVoice.

Phil Stockwell

Local Government Super (LGS) has announced it has rebranded as Active Super, while also reducing member administration fees and removing the switching fee, effective 1 July 2021.

Active Super Chief Executive Officer Phil Stockwell said the name change was part of a broader strategy to place the award-winning industry super fund in a stronger position to engage existing members and attract new members to drive future growth.

“This decision will increase our appeal to a broader range of members looking to have their superannuation invested in a responsible way, as well as delivering great returns so members can maximise their retirement outcome,” Mr. Stockwell said.

“Our ambition is to grow our membership by delivering great value to our members and this rebrand is key to that growth. We have a loyal membership base within local government and beyond, and we will continue to deliver great service for them.

“Active Super was chosen as the name as it captures our long-standing active pursuit of investments that deliver solid long-term returns for members that have a positive impact on the world, as well as our active involvement with our members and their local communities.

“This decision is part of the natural progression that we’ve been following since March 2009 when the Fund opened to members outside the local government sector.

“Member benefits and entitlements will not change nor will our commitment to provide quality service to local government employees and industry across NSW,” he said.

The Fund will continue to invest, service members and operate efficiently in order to deliver positive long-term results for its members.

Lower fees

Mr. Stockwell said the Fund cut administration fees for the second consecutive year as it was actively seeking efficiencies and ways to reduce operating costs.

Effective 1 July 2021, the administration fees on the Accumulation Scheme, the Account-Based Pension Plan and the Retirement Scheme will be reduced, and the switching fee removed.

“We will continue to provide investment expertise and personalised services that our members have come to know and trust. The strength of our portfolio and our continued pursuit of efficiencies has allowed us to reduce costs and pass these savings directly to our members through a reduction of the administration fees,” Mr. Stockwell said.

Accumulation Scheme members will receive a total administration fee reduction of at least 4 per cent per annum depending on the size of their balance. For example, Accumulation Scheme members with a $50,000 balance will save 5.2 per cent per year on annual administration fees.

Account-Based Pension Scheme and Retirement Scheme members will receive a reduction in the weekly administration fee.

Responsible investing

Mr. Stockwell said the Fund’s position as a leader in responsible investing would remain a cornerstone of its investment philosophy.

“We have been investing responsibly for over a decade and first became a signatory to the UN Principles for Responsible Investment in 2007. We have been a pioneer in responsible investing for many years and began this journey 20 years ago when we became Australia’s first super fund to stop investing in tobacco.

“Responsible investment is in our DNA and we examine the environmental, social and governance (ESG) impact of our investments across our entire portfolio while also incorporating active ownership strategies.”

The new brand identity will allow Active Super to capitalise on the changes and reforms occurring in Australia’s $3 trillion superannuation sector.

“Our aim is to help members maximise their retirement income by earning long-term sustainable investment returns. While we are an industry leader in responsible investment, our number one priority is delivering the best member outcomes possible,” Mr Stockwell said.

“We want to use size to our advantage as we are nimble enough to actively manage our investments to deliver great long-term returns and high levels of service for our members.”

The strategy will also offer members a new digital experience as Active Super has redesigned its website, is upgrading its app with increased functionality, and improving the overall engagement experience.

Member-focused fund

Chair Kyle Loades said Active Super’s investments, service and operations would not be affected by the rebrand and that it would remain a profit-for-member fund.

“This as a tremendous opportunity for employees and members alike to embrace an exciting time in our history and future growth strategy. LGS was established in 1997 and has traditionally been the industry super fund for current and former NSW local government employees,” Mr Loades said.

“It is important that we stay true to our heritage and that we focus on our members, delivering a solid performance and doing so in a responsible way. We acknowledge and embrace our proud history and want to take all members along with us as we embark on this new chapter in our evolution as a great Australian super fund.

“We will remain a focused player where size and scale are used to our advantage, and we will maintain our regional presence servicing local government across NSW.”

Mr. Loades said the rebrand would benefit both current and future members as it would help position the Fund to attract new members and increase its scale.

“We would like to encourage our members to be more active with their super while we focus on continuing to deliver a great performance for them.”

The Trustee will remain as LGSS Pty Ltd and the Fund, Local Government Super, will begin trading as Active Super from 25 May 2021.

The post Local Government Super rebrands as Active Super to broaden appeal and drive future growth  appeared first on AdviserVoice.

Mr Stockwell takes up the role from the 26th of November 2019. His appointment follows an extensive executive search.

Commenting on the appointment LGS Chair Kyle Loades said, “Phil’s strategy, leadership and operational experience in financial services organisations in times of change is a good fit for LGS and our members. The LGS Board, in making this pivotal appointment, was focussed on securing a candidate who could lead the fund in key areas. These include maintaining the track record of long-term strong member retirement outcomes and investment returns, remaining at the forefront of sustainable investing, and leading positive change to evolve member service and value.”

“Phil has extensive investment industry experience and a career-long track record of creating and leading effective change programs to deliver better client service and investment outcomes. As such he will work with the Board and LGS leadership to articulate the Fund’s strategy, then lead the business to deliver on our aspirations for members. We are delighted to appoint a CEO of Phil’s calibre and background. He joins an experienced and tenured leadership team and takes over the role from Interim CEO Donna Heffernan.

“I would like to acknowledge Donna Heffernan for her contribution as Interim CEO this year. Donna will revert to her role as Deputy CEO and Company Secretary,” concluded Mr Loades.

Commenting on his appointment, Phil Stockwell said, “I’m delighted to join LGS as CEO. The Fund has a strong platform for growth and evolution, a trusted brand, and history of providing members with strong, consistent and sustainable investment outcomes. This focus on member outcomes and leadership in sustainability are important to me. In a time of great change for all superannuation funds there is increasing focus on improving member investment outcomes, value and service.”

“I look forward to working with the Board, Executive team and all stakeholders to ensure the Fund is well positioned to maximise the value we deliver for members.

The post Local Government Super appoints Chief Executive Officer appeared first on AdviserVoice.

The appointments also strengthen the Board’s skills in targeted areas and increase the diversity of experience as LGS positions itself for future growth and to enhance member value. The newly appointed Chair will provide strategic direction to help the Fund to better serve the current and future needs of our members. LGS has historically delivered long-term value, consistent financial outcomes for members, while doing so, is mindful of implementing sustainability considerations in all its investment decisions.  

The outgoing Chair, Bruce Miller remains on the Board as a Deputy Chair.

Mr Miller, said: “The Board welcomes Kyle Loades as the first independent Chair. He brings a track record of leadership, member-focussed transformation and digital client service gained from Board experience with organisations such as the NRMA, Credit Union Australia, roles with community organisations and as a founder of an innovative business. His focus on member-based organisations and innovation will be an asset to the LGS Board as we work to deliver the best possible retirement outcomes for our members.

“Kyle will be joined by Sandi Orleow, LGS’ first female Independent Director. Sandi has extensive board experience in the local and global financial services sector, with a particular focus on superannuation, investment management and consulting. Her in-depth financial services expertise will make her a great asset to the Board. She is a strong advocate for innovation and growth strategies to allow these to be considered and successfully integrated in traditional businesses for the benefit of members.”

LGS incoming Chair, Kyle Loades, said: “LGS has an enviable investment track record, and is consistently recognised as a global leader for its long-term commitment to responsible and sustainable investing. I’m honoured to be appointed LGS’ first independent Chair, and to work with a Board and a leadership team who are committed to delivering great member outcomes.

“Achieving the best possible retirement outcomes for members will continue to be the focus of the current and future Board and leadership teams. At the same time, the Board sees opportunity to enhance member value in the future. In line with APRA’s expectations and support, this will be an active consideration for the Board and the leadership team.

“With a solid base of existing members and a singular focus on member benefit, LGS has an opportunity to grow as we enhance member value and continue to help members have a better retirement thanks to long-term sustainable returns. I look forward to leading the Board and working with the executive team to serve members well now and in future.”

LGS Acting Chief Executive Officer, Donna Heffernan said: “The leadership team is excited to have the benefit of Kyle and Sandi’s in-depth experience from other member-focused organisations. Kyle has worked closely with executive teams of prominent and well-respected member-based organisations to significantly enhance member value. Similarly, Sandi has held various director and investment committee roles at relevant member-based and investment-focused organisations such as CFA Societies Australia, Statewide Super as well as Women in Super that we expect will benefit our Board, investments, and our members.”

“We look forward to leveraging Kyle and Sandi’s board and executive experience and expertise for the benefit of our members.”

Kyle and Sandi commenced their roles on 22 October 2019.

The post Local Government Super appoints Independent Chair and Independent Director appeared first on AdviserVoice.

Kyle Loades

Disruption and transformation is not all about technology. It is as much about educating leaders and empowering people to transform, says a leading not-for-profit.

As recently reported in the media, many boards do not understand digital disruption and the associated need to transform well enough[1].

And not enough board members and senior executives want to learn the skills that are required, cautions The Australian Transformation and Turnaround Association (AusTTA).

“If they did, they would ensure their future and career, and the longevity of the companies they lead” says AusTTA chair Kyle Loades.

Mr Loades, who is himself a chair of several organisations, realised this challenge and undertook a course with AusTTA “to better understand those organisations I was helping to lead”. This saw him become a Fellow of Transformation and then ultimately the chair of AusTTA.

“That course revealed so much, so much that we as directors all need to learn. It is why I became more involved with this not-for-profit, to help other directors realise that they can contribute so much more to the organisations that they are leading.

Mr Loades added: “Unfortunately too many leaders believe disruption is all about technology and that they can’t control that. There is much more to disruption and ensuing transformation, aspects that they can direct and control. There are simple and easy to use tools and techniques that can make a big difference to an organisation between simply surviving to thriving today.”

“Some leaders do nothing as they think that doing something, changing things is too much of a risk. The greatest risk is doing nothing in today’s changing markets!” Mr Loades said one of the greatest problems Australia faces today is to overcome entrenched leaders’ dislike of change. “The increasing convergence between physical and digital businesses globally are reshaping the nature of competition.

“Global economies are increasingly shifting from supply-side economies based on the production and distribution of products and services to demand-side economies that are anchored in customers and communities. These shifts together with the emergence of a range of technologies and channels are fundamentally changing the nature of business.

“It requires both;

·      the adoption of emerging digital technologies that are transforming the customer experience, operational processes, and business models; and

·      new leadership capabilities that can support how the organisation manages the digital transformation.

“These shifts will be the foundations of prosperity in the 21st Century,” he said.

———-
[1] https://www.afr.com/business/banking-and-finance/impenetrable-samuel-smashes-girls-club-20190326-p517ne

The post Overcoming digital disruption is not just about technology appeared first on AdviserVoice.