Betashares to acquire superannuation business from Bendigo and Adelaide Bank
Bendigo and Adelaide Bank (the Bank) today announced it has entered into an agreement with Betashares, a leading Australian asset management group, for the sale of Bendigo Superannuation Pty Limited (BSPL).
BSPL is a wholly owned subsidiary of the Bank, and trustee and issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension products, which are part of the Bendigo Superannuation Plan (the Fund). BSPL currently has funds under administration of $1.4bn, with more than 19,000 members.
The announcement follows a sale process for the Bank’s superannuation business where it was determined that Betashares had the investment scale, expertise and commitment to customer service that will best serve Fund members into the future.
Chief Customer Officer Consumer Banking, Bendigo and Adelaide Bank, Richard Fennell, said “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.
“Betashares was selected following a process that took into consideration several factors, including alignment with our own strong customer focus and the ability to enhance member outcomes. As part of this process, the Bank has prioritised a smooth transition to a new provider.
“The Bank believes this transaction is in the best interests of BSPL’s members and will deliver enhanced retirement outcomes for them over time.” Mr Fennell said.
Betashares CEO, Alex Vynokur, said the move into superannuation was part of a carefully considered long-term plan to play a greater role in helping Australians meet their wealth creation goals.
“For over a decade, we’ve assisted hundreds and thousands of Australians to meet their financial goals through our innovative and cost-effective range of investment solutions. Superannuation plays a very important role in each Australian’s wealth journey, being the sole retirement investment for many. As a result, superannuation is a natural next step in our expansion strategy, a move we have been actively exploring for some time. We have a long-term plan to build our investment in superannuation.
“While our immediate focus for this acquisition is a smooth transfer of ownership, we intend to invest further to extend the existing investment offering, as well as adding further financial education and member tools in order to position the Fund for sustainable growth. These initiatives plus a focus on significantly growing the Fund’s scale are all aimed at delivering enhanced member outcomes over the longer term,” Mr Vynokur concluded.
The sale of BSPL is subject to customary regulatory approvals and conditions and is expected to complete during 2024. The Bank expects minimal disruption to Fund members as a result of the sale and it is further expected that a number of Bank employees will transfer to Betashares to ensure continuity of service and offering to Fund members.
About Bendigo and Adelaide Bank Limited:
Bendigo and Adelaide Bank is Australia’s better big bank, with around 8,000 staff helping our more than 2.4 million customers to achieve their financial goals. Bendigo and Adelaide Bank’s vision is to be Australia’s bank of choice, by feeding into the prosperity of customers and their communities.
Betashares is a leading Australian asset manager and one of Australia’s largest exchange traded fund (ETF) issuers. Established in 2009 with the vision to enable every Australian to achieve financial progress, Betashares currently serves more than 1,000,000 investors and manages over $30 billion in fund assets as at 31 August 2023.