The super fund closing its doors in March
A retail superannuation fund offered to customers of several small players in Australia's banking sector will close in March.
Credit Union Building Societies Superannuation, known as CUBS Superannuation, is a retail offering overseen by Equity Trustees Superannuation. Products or sub-plans of the fund include Bank First Super and Pension Fund, Beyond Super, Defence Bank Super and Pension Fund, Greater Rollover and Pension Fund, Hunter United Super Choice and Pension Fund, and Qudos Super and Pension Fund.
Equity Trustees Superannuation has decided to wind up CUBS Superannuation, citing "commercial and regulatory developments that impact the future sustainability of the fund" as well as the best financial interests of members.
The fund is due to be terminated on March 1 with the fund to stop receiving contributions to accumulation accounts on February 4 and cease pension payments on February 11.
Members have been requested to inform the fund of a new super product to which their balances will be transferred, save having the funds transferred to the ATO.
According to APRA data, in June 2020 CUBS Superannuation was home to just 1200 members while the fund's 2021 annual report shows it had just $88 million in funds under management.
Last financial year the fund received just over $8 million in inflows. This was comprised of $2.4 million in employer contributions, $1 million in member contributions and $4.8 million in net transfers.
According to the annual report, 61% of the fund's assets were held in bonds and cash in 2021; 45% of its FUM was invested in the Vanguard High Growth Index Fund.
"Its low scale obviously presents major challenges in the current superannuation regulatory environment," says Rainmaker executive director of research Alex Dunnin.
"The closure of the fund continues the trend of many mutual banks not being able to convert their highly engaged banking customers into wealth management customers."
CUBS Superannuation is administered by Mainstream Superannuation Services. Its group insurer is TAL and Atchison Consultants serves as asset consultant.
This article first appeared on Financial Standard
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