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.
