Betashares to enter Australian super industry
Betashares is establishing itself in the sector with its acquisition of the superannuation business arms of Bendigo and Adelaide Banks.
It will mean the company can now expand its offerings from ETFs into the broader financial services sector.
The Australian superannuation system is the fourth largest pension market globally with over $3.5 trillion dollars in assets, forecast to grow to over $9 trillion by 2041.
As part of its acquisition strategy, Betashares intends to use its investment scale, experience and operational and risk management capabilities to grow its presence in superannuation and deliver better outcomes to members.
“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,” said Betashares CEO Alex Vynokur.
“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.”
Betashares’ planned acquisition of Bendigo Superannuation from Bendigo and Adelaide Bank is subject to regulatory approvals and is expected to be completed in 2024. Currently, Bendigo Superannuation has assets of $1.4 billion and more than 19,000 members.
Along with progressing its broader growth strategy, Betashares intends to add further scale to its leading range of ETFs with investment in product development, client service and investor education.
Mr Vynokur said Betashares currently serves over one million Australian investors and their financial advisers.
“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,” he said.
“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.”
