Future Super, Verve to overhaul investments

Future Super and Verve Super will be merged into the Smart Future Trust, giving members of each a completely new menu of investment options for less, including a dedicated gender equity option.

From May 23, the Future Super Fund, including the Verve Super sub-plan, will be moved into a standalone division of the Smart Future Trust by way of a successor fund transfer.

The Future Super and Verve Super brands will remain, and they will continue to invest in the same way, with the existing approaches to screening and impact investing to remain as is.

However, members of both offerings will benefit from the advantages of scale the move offers, seeing an immediate administration fee reduction and access to an enhanced range of investment options. They will also now have access to intra-fund financial advice.

"Bringing together our back-office investment structures will allow us to pass on the benefits of scale to our members. We're delivering more value for members by cutting fees, providing a wider range of investment options and offering access to financial coaching," Future Group chief executive Simon Sheikh told Financial Standard.

"Members will continue to benefit from investments that match their values with the Future Super and Verve Super products operating as part of a standalone division within the fund."

Upon transfer, the existing investment options for both Future Super and Verve Super will be closed. Members' investments will then be appropriately mapped to six new investment options.

For Future Super accumulation members, the new options are Sustainable Moderate, Sustainable Balanced Growth, Sustainable Growth, Sustainable High Growth, and Sustainable Alternatives Growth. There will also be a Balanced option, but this will be closed to new members from May 24.

As an example, a Future Super member with $50,000 currently invested in the Balanced Impact option will have 85% of their balance placed in Sustainable Balanced Growth and 15% in Sustainable Moderate. Overall, they will go from paying $781.50 a year for the product to $687.43.

Meantime, pension members will be able to invest across the Sustainable Moderate, Sustainable Balanced Growth, Sustainable Growth options, or remain in the Balanced option.

Verve members - who can currently only invest in a single option - will also have access to the Sustainable Moderate, Sustainable Balanced Growth, Sustainable Growth, Sustainable High Growth, and Sustainable Alternatives Growth options, but will also be able to invest in a dedicated Gender Equity Australian Shares strategy.

Since 2021, Verve Super has directed its investments to companies that perform well when it comes to gender equality, including across pay parity, women in leadership, and inclusivity.

The new option focused on gender equity will screen for the same five thematics as its Gender Equity Index does: gender pay parity, anti-sexual harassment and workplace safety policies and practices; formal commitments to drive change in inclusivity and flexible workplace practices; promotion of women into leadership; and paid parental leave.

However, the approach is slightly updated; the portfolio also now creates a positive bias towards companies that hold a current Workplace Gender Equality Agency Employer of Choice Citation.

A Verve member with $50,000 invested in the Balanced option will have their balance evenly split across the Sustainable Moderate and the Gender Equity Australian Shares options, saving them about $25 a year in the process. Under Verve's new parents policies, they could save even more if they've been off work or worked for less than 10 hours a week while caring for a new child as they can request a full or part refund of the annual admin fee.

Sheikh added: "Over time we look forward to providing even more on the Future Super and Verve Super platforms as we respond to members interests."

As at December 2024, Future Super held about $2.46 billion in funds under management on behalf of 58,542 members. Verve Super has about $270 million in assets and close to 7000 members.

Meantime, the Smart Future Trust is home to just over 60,000 members and about $6 billion.