GROW Super, the APRA regulated superannuation fund is closing down on 11 May 2022.
GROW Super is different to Grow SMSF. Grow SMSF is not closing, in fact, we are growing fast with more people setting up an SMSF every day.
The fund was operated by Diversa Trustees Limited as a sub-fund or the Smartsave ‘Members Choice’ Superannuation Master Plan. The investment management was outsourced to Dimensional Fund Advisors.
Members of the fund now have to decide which super fund to move their superannuation monies to. If a GROW member doesn’t make a choice, their super balance will be transferred to the ATO around 27 May 2022 according to Diversa (the trustee).
GROW Super was launched in 2017 to target younger superannuation savers with a long investment horizon. While other ‘neo-super’ funds focused on low-cost passive investment, GROW used an active strategy when it came to investment management.
GROW Super always would find it tough. Regardless of how good their product was, and how the fund performed for its members, they were up against the toughest challenge of all: APATHY.
Historically, most young people have been disengaged with their super. Thankfully, this is changing as more people begin to invest at a younger age. The COVID pandemic sped up the existing trend and lead to a surge in retail investing.
GROW Super is not the only new-aged super fund to close in recent times. Zuper and GigSuper have also closed their funds due to a lack of scale. In addition, even larger super funds are either closing or merging. For example, QSuper and Sunsuper recently merged to form Australian Retirement Trust.
GROW Super has stated the following:
“Considering these changes and the ever-evolving regulatory landscape, Diversa Trustees Limited has made the decision that it would be in the best financial interests of members to close the GROW Super product within OneSuper.”
GROW had $47.18 million in funds under management as at 30 June 2021 according to APRA data.
The GROW Inc. business that provinces administration services to superannuation funds is not closing.
If you want to learn more about setting up an SMSF with Grow, check out the following article: How to set up an SMSF