Yet another bank exits super
Yet another bank has exited its superannuation business – this time Bendigo and Adelaide via a transaction with Betashares.
Betashares announced the transaction yesterday, but it follows on from the recent exit of Westpac with the sale of the BT superannuation business to Mercer and before that the exit of ANZ and MLC Wealth to Insignia Financial.
The Bendigo and Adelaide superannuation business has 19,000 members and assets of $1.4 billion.
Betashares described the acquisition of the superannuation business as a transformational step and part of a longer-term strategy to expand the business into the broader financial services sector.
It said the expansion was highly complementary to the Betashares ETF business, which recently passed $30 billion in funds under management.
Commenting on the move, Betashares chief executive, Alex Vynokur said that as part of its acquisition strategy, Betashares intends to use its investment scale, experience and operational risk management capabilities to grow is presence in superannuation.
“We have been actively exploring entry strategies for some time, and have a long-term plan to significantly invest in building our superannuation presence,” Vynokur said.
“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.”
Bendigo and Adelaide’s Chief Customer Officer Consumer Banking, Richard Fennell said the sale of the business would reduce complexity.
“Following a review that considered the interests and needs of our members and the future investment required in the business, the Bank has decided to proceed with the sale of BSPL, in line with the Bank’s strategic imperative of reducing complexity,” he said.
The transaction is subject to regulatory sign-off.