Betashares completes entry into Aussie super industry

The exchange-traded fund (ETF) provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.

Betashares announced on 2 September that it has completed the acquisition of Bendigo Superannuation, marking its formal entry into the superannuation space.

Following the receipt of regulatory approvals, the acquisition, first announced in September last year, will see the fund manager take ownership of Bendigo Super, which manages some $1.4 billion in assets and boasts 19,000 members.

According to Betashares, the acquisition is a part of its long-planned entry into the $3.9 trillion superannuation sector as it seeks to become a leading financial services provider, offering innovative products to support Australians at every stage of their wealth creation journey.

“Over the past 14 years we’ve expanded the range of investment solutions that are guided by our values of simplicity, cost-effectiveness and transparency, aiming to democratise wealth creation opportunities for investors,” said Betashares founder and CEO, Alex Vynokur.

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“As we expand into a broader financial services business, we’re focussed on helping our clients make smarter financial decisions and create long-term value as they look to progress on their wealth creation goals.”

Betashares also confirmed it has made a number of new hires to work alongside the Bendigo Superannuation team who have transitioned across as part of the acquisition.

Additionally, it said it plans to undertake a review of the super fund’s investment menu towards building enhanced super solutions.

​“Over time, Betashares has a vision for superannuation that includes bringing more member focus and innovation to the industry. This strategy will include a greater range of investment options, improved member engagement, and enhanced education,” it stated.

​Vynokur added that Betashares’ ​heritage, expertise, values and client focus will enable the fund manager “to bring a unique perspective to Australia’s internationally renowned superannuation sector”.

“To that end, as well as ensuring a smooth continuation of day-to-day operations for existing members, we are working on a range of initiatives to bring more member focus, improved member outcomes and better education to the Australian superannuation industry,” he said.

“This work will be underpinned by our passion for innovation and laser focus on helping Australians financially progress.”

Australia’s superannuation system is the fourth largest pension market and is projected to grow to more than $11 trillion in 2043.

Vynokur continued that Betashares remains “well aware” of the importance of superannuation to the financial wellbeing of Australians, given its place as the biggest asset outside of the family home for many people.

“Over the coming years, we will continue to invest in our already extensive capabilities and build on our trusted position as a steward of capital for over one million Australians to help them meet their financial goals from accumulation to retirement,” he said.

Betashares currently holds more than $40 billion in assets under management.

The completion of the Bendigo Superannuation acquisition follows the investment of up to $300 million from global investment company Temasek, announced in June this year. This investment is expected to turbocharge a range of growth initiatives for Betashares.