Niche Pensions Get Creative to Avoid Being Gobbled Up by Giants
- Australian funds below A$10 billion halved in past decade
- Maritime Super is outsourcing investing to reduce costs
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Australia’s smallest pension funds are being forced into survival mode as increased regulatory scrutiny on fees and investment performance in the country’s A$3.1 trillion ($2.3 trillion) superannuation industry makes mergers all the more likely.
Maritime Super has outsourced its A$6 billion investment portfolio to larger-rival Host-Plus Pty to cut costs and boost returns. First Super inked a deal to draw in retirement savings of New Zealand workers who migrate to Australia, adding to its A$3.6 billion asset base.