How MLC wants to play the corporate super revival

Corporate super mandates are “really important” for MLC Super’s ability to grow and retain its members, according to chief executive Dave Woodall – but that doesn’t mean it can’t be a mutually beneficial arrangement for both employers and employees.

“I’ve spent a lot of my career in the corporate super segment, and I still think that this segment is really important,” Woodall tells Investment Magazine the sister publication to Professional Planner. “My experience has been that a lot of employers are interested in helping their employees around what I call the “money pillar” of their employee value proposition [EVP]. And I actually think employers can really help members achieve better outcomes, because the workplace affords tailoring and bespoke arrangements.”

While there’s an industry view that merger activity has broadly slowed – and that the corporate segment is mostly played out – Woodall thinks that corporate super arrangements can be a key channel for MLC to grow and retain its member base, and the fund has been pushing towards more wins in the space, even as competition from the likes of Aware Super heats up.

“It’s really important from a growth perspective for us, but I believe corporate Australia can really add to the activity that is necessary to improve outcomes for members,” Woodall says. “Employers can materially influence employee engagement. What we all keep talking about all the time is that engagement [with members] is challenging, and different funds will claim different degrees of success, but the employer is a relationship/channel that people often overlook.”

During his time at Australian Retirement Trust, where he was first chief growth officer and then chief commercial officer, Woodall oversaw a number of corporate super transfers, including Woolworths Group, Endeavour Group, Commonwealth Bank Group Super, Alcoa, AvSuper and the Australia Post Superannuation Scheme.

Now, at MLC, Woodall thinks that there’s a new wave of activity on the horizon for corporate super but that funds will need to get their own value proposition right to play it. That comes down to high performance, low fees and good service – all of which Woodall thinks MLC is well-positioned to provide.  

That’s not just because the dispersion between profit-to-member and retail fund fees and performance has shrunk considerably (Woodall says he doesn’t think in terms of business models and doesn’t “even use the words ‘retail fund’) but because of the admin deal Insignia struck with SS&C in 2024.

“In the last 12 months, performance on our core operational metrics is as good as it’s ever been,” Woodall says. “We’ve seen uplift, and that’s peer relative. We have a credible proposition today, and it’s going to get better next year.”

With high-profile layoffs at Canva, and the collapse of David Jones, Woodall also anticipates that tailored corporate super arrangements will be vital for preserving trust between employers and employees.

“Having a plan and an arrangement that’s good value can instil a lot of confidence when there’s a bit of ambiguity in life – particularly at the moment,” Woodall said.

“Financial confidence comes in many ways. But if you’ve got a plan around retirement, our view would be you’re a more effective employee, right? And the employer gets a more productive and effective person, and that person feels more empowered and confident about where they’re going. Frankly, that becomes more important moving forward, given what’s been happening in the last month or so, which is going to continue for a while.