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Industry super funds getting heavier at the top
Consolidation between industry super funds has led to the 10 largest funds increasing their market dominance and created a new-look leader board.
The top-10 funds account for more than two-thirds of total industry fund assets under management, which is still growing, according to the latest Tria Investment Partners Industry Fund Review.
“The big are getting bigger, applying pressure on trustees of the smaller industry funds to shore up their respective future positions via growth or consolidation,” said Tria Investment Partners managing partner Andrew Baker.
Overall, the industry fund segment grew by 17 per cent in the year to 30 June, 2010, due to both investment growth and inflows, outpaced only by the self-managed sector.
The review shows the market is continuing to segment into categories of leaders, followers, and the tail, Baker said.
“We have seen three funds out of the 11 in the followers category (EquipSuper, Health Super and Westscheme) announce consolidations in the past year,” he said.
AustralianSuper grew its market share to 15.1 per cent during the year, up from 14.9 per cent the previous year. The fund also recently announced its intention to merge with Westscheme, which will further entrench market dynamics while creating a $40 billion market leader, Tria stated.
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