‘Open for business’: Future Super chasing mergers to triple funds by 2030

Mr Sheikh said APRA had articulated that $10 billion was a “red line when it comes to size” and said the fund was in active discussions with a “large number” of funds wanting to merge, adding he would prioritise partnerships with technology-focused funds.

“Future Super is most definitely announcing through this transaction that we’re open for business when it comes to mergers and acquisitions. We have ongoing discussions with other potential partners happening right now.”

However, Mr Sheikh said the majority of Future Super’s membership growth came from member referrals, and he continues to see this as being integral to its growth.

The superannuation industry has undergone a period of rapid change this year, with the federal government introducing a wide range of reforms that dismantle the default system and encourage consumers to make informed choices about their super.

Future Super does not invest in fossil fuels and uses social media to run campaigns targeted towards millennials. Mr Sheikh said his fund would benefit from tailwinds including the rising popularity of ethical investment strategies and the new ‘stapling’ measure that ties a worker to one fund.

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Future Super has relied on marketing to grow its membership base rather that deals with employers, and Mr Sheikh said this will continue to be the case, adding the fund’s average member was 29 years old so the fund’s assets will naturally grow over time.

“Every single member in Future Super has made a choice to be there,” he said. “There is no default offering for the core Future Super fund. That positions us beautifully when it comes to the shake up of the default system.”

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