Betashares buys Bendigo Bank super arm as it enters retirement market
ETF provider Betashares is acquiring Bendigo Bank’s superannuation arm as part of its bid to take on the $3.5 trillion super sector and establish itself as a broader financial services outfit.
The two companies announced the sale, which is still dependent on regulatory sign off, on Wednesday morning, and follows an 18-month search by Betashares for an entry point to the superannuation industry.
BetaShares CEO Alex Vynokur says the super sector is ripe for disruption. Oscar Colman
Bendigo Superannuation has just $1.4 billion under administration and around 19,000 members, but Betashares chief executive Alex Vynokur said he had significant expansion plans for outfit.
It follows asimilar move by Vanguard last year to tap into the rivers of gold provided by Australia’s mandatory super contribution scheme by launching its own fund, though progress on that attempt has been slow as the asset manager struggles to penetrate a market increasingly dominated by just a handful of industry super megafunds.
Mr Vynokur said Betashares had been inundated with “very significant level of inbound interest” from clients wanting to swap to the provider, and he planned to leverage this demand for growing the new fund. “We certainly think there is room for significant improvement in delivering innovative, value for money and engaging superannuation offerings,” he said.
“There’s definitely a time in place for the offering that the industry funds bring to the table. At the same time, I would say that our DNA is all about providing exciting but responsible innovation in everything we do.”
Betashares would also seek out more acquisition opportunities to grow the fund, Mr Vynokur said.
Super funds have typically struggled to grow their member bases
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