More than three-quarters of assets under management and member accounts are forecast to be managed by the 12 largest funds, once the current mergers on the horizon have played out. KPMG has made the call in its latest annual Super Insights report, which has recorded accelerated merger activity in the sector. Using ATO and APRA data, KPMG has focused on APRA-regulated funds, which represent $2.4 trillion in assets under management. During 2019/20, the number of funds had fallen from 171 to 154.
By the time the currently known mergers are through, 76 per cent of assets under management (AUM) and 77 per cent of member accounts are projected to be managed by the top 12 funds, each with AUM greater than $50 billion. Around half (47 per cent) of AUM and 43 per cent of member accounts are expected to be overlooked by five “mega funds”, in excess of $100 billion of AUM. AustralianSuper retained its spot as the largest fund as at June 2020, with around $180 billion in funds under management. Aware Super, after merging with VicSuper, and QSuper had overtaken AMP in second place, with around $120 billion in AUM.
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