An in-depth analysis of Australia’s $1.4 trillion superannuation funds industry has identified the relative success and key growth metrics of Australia’s large funds, allowing an assessment of who is really winning, and why.
The new Tria Investment Partners Super Funds Review creates a single view across all major segments – Retail, Industry, Government and Corporate – and reveals the extent to which funds are increasingly reliant on merger and acquisition activity to stimulate growth or remain competitive.
“One of the surprises to come out of the report is the extent to which funds have employed M&A to fuel growth in a difficult market environment,” said Tria Investment Partners Managing Partner Andrew Baker.
“Beneath the headline growth numbers, organic growth generated by net inflows remains a clear challenge. Strip away growth achieved from expensive M&A exercises and we are left with some market participants struggling to keep pace with system growth.
“Those who have invested heavily in growth by acquisition have taken market leading positions, but face the further challenge of fund retention. Market share leakage remains a present risk.”
The Super Funds Review defines and applies key business metrics to competitors in all segments, which allows fair comparisons to be made between the relative health and position of Australia’s leading industry and retail funds, for example.
“The Tria Industry Fund Review established Tria’s research credentials in the large fund space. The degree of change in the market has resulted in our clients asking for something even bigger and better which covers the entire superannuation market,” Mr Baker said.
Tria seeks to establish the Super Funds Review as the leading source of information regarding large super fund business performance with senior management, boards and strategy groups of funds together with observers of the market.
