POWERED BY MOMENTUM MEDIA
Super fund mergers progressing at faster paces
Needs of members need to be a priority as more superannuation funds merge at a faster than ever pace, according to industry panellists at a recent QMV event, which came as the super industry faces increasing pressure to consider mergers more seriously in the wake of Banking Royal Commission recommendations.
The event featured discussion from the Hon. Nick Sherry, former federal minister and Household Capital chair; Rose Kerlin, AustralianSuper group executive of membership; Katherine Kaspar, Kinetic Super chief executive officer; and Josh Wilson, GROW Super chief executive officer.
The panellists said many superannuation funds that exist today would not be here in five years’ time because of underperformance or because a merger would be more advantageous.
Stephen Mahoney, executive director at QMV, said the rate of consolidation over the last 15 years had been significant and shows no sign of slowing.
“Panellists agreed that grace periods are over, with more aggressive movement being required,” Mahoney said.
“They said mergers will be driven by a number of factors, including APRA focusing on poor performance, as well as the potential for members to push trustees to wind funds up.
“In addition, technology and the growth of digital offerings in superannuation is changing the industry landscape in multiple ways and will see smaller existing funds seeking new economies of scale.
“Fund trustees need to continually ask themselves whether they should continue to exist, or whether a merger is in the best interests of their members.”
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over 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.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
