Two ‘mega funds’ expected to reach $1trn in AUM
AustralianSuper and Australian Retirement Trust (ART) are expected to dominate the superannaution market over the next 10 years, according to KPMG, swelling to $1 trillion each.
In its latest Super Insights report, the firm said, excluding any other mergers, both funds were likely to grow their assets under management from around $200 billion in 2021 to $1 trillion by 2040.
Aware Super was likely to grow to $600 billion while Insignia could grow to $500 billion, both up from less than $200 billion in 2021.
KPMG said: “Under these projections, a small number of large ‘mega funds’ will continue to pull away from the rest of the population. However, in practice, multiple drivers – future consolidations, individual funds’ levels of success in attraction and retention of members, particularly in the retirement space – will impact how the market shifts”.
The level of consolidation was likely to continue for the next few years, particularly as the Australian Prudential Regulation Authority was seeking greater power to force funds to merge. There had been two successor fund transfer (SFTs) announced in 2022.
AUTHOR
Laura Dew
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
