Harwood Superannuation Fund has made an in-principle decision to transfer its $1.4-billion fund into another under successor-fund provisions. The fund is the default for Australian employees of CSR Limited, Holcim (Australia) and Wilmar Sugar.
The decision to transfer the fund’s accumulation-based benefits was made following discussions with the employer members, which are no longer related companies under the CSR banner.
“We’ve made an in-principle decision to look for an appropriate successor fund for mainly the accumulation,” said Roslyn Ramwell, chief executive of Harwood. “And we haven’t made any decision on the defined benefit part yet. We will be looking for what’s in the best interests of members.” The components could be divested into two different funds.
The fund has engaged Deloitte to undertake requests for proposals to a number of funds, including both retail and industry master trusts.
“Our fund is in a very strong position, has strong investment returns and low fees, so we’re obviously looking for a fund that’s going to offer something better than what we’ve already got,” said Ramwell, pictured right.
The process could take approximately nine months, she added.
Chair of the fund, Warren Gray, said the successor-fund transfer is not guaranteed.
“Our main concern, as trustee, is to obtain the best result for all members of the fund. If a suitable fund or funds cannot be identified, then the transfer will not proceed.”
Harwood Superannuation Fund has 13,500 members.
It is understood that a number of industry funds have expressed interest to Harwood, including Sunsuper.