Superannuation funds facing weak organic growth: Tria
Many of the largest superannuation funds in Australia are relying on mergers to mask relatively weak organic growth, according to a report by Tria Investment Partners.
Tria managing partner Andres Baker said the report revealed the extent to which funds were dependent upon mergers to fuel growth in a weak economic environment.
"Beneath the headline growth numbers, organic growth generated by net inflows remains a clear challenge. Strip away growth achieved from expensive merger and acquisition exercises and we are left with some market participants struggling to keep pace with system growth," said Baker.
While many of the funds that have undertaken mergers are in "market leading positions", they face the challenge of retaining their current funds under management, Baker said.
The Tria Super Funds Review examined 81 funds across all sectors, with assets under management of over $1 billion.
The report is an expansion of the Tria Industry Fund Review, and allows subscribers to compare the health and position of super funds from different market segments, said Baker.
The report also includes maps of the total market, the impact of mergers, market share tables, net inflow rankings, insights and trends, and profiles of all 81 funds reviewed, according to Tria.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Australia’s superannuation funds are becoming a defining force in shaping the nation’s capital markets, with the corporate watchdog warning that trustees now hold systemic importance on par with banks.
Payday super has passed Parliament, marking a major shift to combat unpaid entitlements and strengthen retirement outcomes for millions of workers.
The central bank has announced the official cash rate decision for its November monetary policy meeting.
Australia’s maturing superannuation system delivers higher balances, fewer duplicate accounts and growing female asset share, but gaps and adequacy challenges remain.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
