There is still a need for consolidation to occur within the Australian superannuation industry, according to new analysis released by KPMG.
KPMG’s Super Insights Dashboard and Report, released today, has found that while large funds are getting larger, there are still too many smaller funds which need to consider their futures.
The KPMG research also suggests that, in terms of market share, industry funds have caught up with retail funds over the past decade, noting that in the last decade a migration of market share from retail to industry funds with corresponding increase in assets under management (AUM) by industry funds had occurred.
It said that from 2004 to 2016, retail funds declined in market share from 43 per cent to 29 per cent, with the market composition now virtually one third retail, one third industry/public sector and one-third SMSF.
Commenting on the findings, KPMG head of wealth advisory, Paul Howes said industry funds were no longer the challenger.
“They are now the incumbents,” he said.
“Judged by both AUM and the number of accounts held by funds they are the equals of the retail funds, whose cash flows are relatively weaker and whose lead in number of members is falling.
“At a macro level, the sector is effectively reshaping from its traditional divide between retail, industry and corporate funds to a converging grouping based on the level of AUM and complexity of operating model and offerings.”
The other findings of the KPMG research included:
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
Assistant Treasurer Stephen Jones has defended the government’s plan to modestly cut tax concessions for Australia’s wealthiest superannuation accounts, saying it is a “fairer outcome”.