Betashares ventures into super industry with acquisition

ETF provider Betashares has announced it has reached an agreement to acquire Bendigo and Adelaide Bank’s superannuation business, marking a “transformational step” for the firm.

It is expected to complete in 2024, subject to regulatory approvals.

Currently Bendigo Superannuation has assets of $1.4 billion and more than 19,000 members.

According to Betashares, the acquisition is the first major initiative as part of a longer-term strategy to expand the business into the broader financial services sector.

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“We are privileged to serve over one million Australian investors and their financial advisers today. Over the course of the next decade, we have a vision for the firm to continue developing into a leading, independent Australian financial services business,” said Alex Vynokur, chief executive.

“We are driven by our vision to help Australians achieve financial progress and we are motivated to bring more client focus, education and genuine innovation into the Australian superannuation industry.”

The Australian superannuation system is forecast to grow to over $9 trillion by 2041. It is presently the fourth largest pension market globally with over $3.5 trillion dollars in assets.

Vynokur noted: “For most Australians, superannuation is the largest asset outside of the family home and plays a key role in each Australian’s wealth journey and retirement outcomes. 

“As such, while ETFs will always remain the bedrock of our business, we are equally determined to bring our ethos of diversification, cost effectiveness, investor education and engagement into the superannuation sector, and it is a natural next step in our growth strategy. 

“We have been actively exploring entry strategies for some time, and have a long-term plan to significantly invest in building our superannuation presence.”

As of September 2023, Betashares manages over $30 billion in assets.

It is the largest ETF provider in Australia with 35 per cent of market share, ahead of Vanguard (28.9 per cent) and iShares (21.8 per cent) as of August 2023.