Two ‘mega funds’ expected to reach $1trn in AUM

AustralianSuper/Australian-retirement-trust/KPMG/

1 June 2022
| By Laura Dew |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

1 month 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 months 4 weeks ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks ago

The exit of co-CIOs Andrew Clifford and Clay Smolinski from Platinum has highlighted key person risk, with Morningstar raising its outflow forecast to 33 per cent of FUM ...

1 month ago

TOP PERFORMING FUNDS