POWERED BY MOMENTUM MEDIA
AustralianSuper set to tighten grip on industry as retail funds fall behind
AustralianSuper is poised to cement its leadership in the superannuation landscape over the next five years, with fresh research forecasting a sharp shift in the sector’s power dynamics.
WTW’s latest superannuation report reveals that the merger-fuelled growth seen in recent years is expected to taper off as fewer viable targets remain, placing the spotlight firmly on organic growth as the key driver of long-term success.
The report identifies Rest, Hostplus and HESTA as standout performers in this new era, benefiting from strong inflows driven by workforce expansion and the impact of stapling reforms.
Rest is projected to move up five positions, from 12 to 7 in the firm’s fund rankings, over the next five years, whilst CBUS and HESTA are tipped to jostle for the 8th position.
Care Super and Equip Super are also expected to rise in the rankings, partly due to announced mergers with Spirit Super and Telstra Super, respectively.
With strong organic growth, AustralianSuper is expected to remain Australia’s largest superannuation fund in five years’ time and if anything, increase its dominance of the industry.
In general, WTW said, retail funds are projected to decline in the rankings, with funds such as Retirement Portfolio Service (which includes various ANZ products), CFS First Choice, Macquarie, Asgard, Wealth Personal and AMP Super all expected to drop between two to six positions over the next five years.
The notable exception to this trend is HUB24, which is projected to climb eight positions over the next five years based on their current organic growth levels, following a climb from 25t to 22n over the year to 30 June 2024.
Other notable retail funds on the rise include Australian Ethical Retail Superannuation Fund, which is expected to rise six positions to break into the top 30 funds.
Looking at the industry as a whole, WTW highlighted “significant changes” for small and medium funds over the five-year period to 30 June 2024, with a 55 per cent reduction in the number of funds with FUM under $50 billion.
This, it noted, has resulted in the further consolidation of assets among the large funds, which now control 80 per cent of superannuation assets, up from 63 per cent at 30 June 2019.
Recommended for you
The Reserve Bank of Australia (RBA) has warned that significant liquidity pressures could arise in the superannuation sector if multiple risks materialise at once, potentially amplifying shocks in the financial system.
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.63 3 y p.a(%)
3
Fidante Credit Suisse Global Private Equity
32.16 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
5
Plato Global Alpha A
27.76 3 y p.a(%)
