Betashares rules out entering advice amid expansion into super

Betashares recently revealed it will enter the superannuation industry by acquiring Bendigo Bank’s superannuation arm.

At the time, the firm said this development represents the beginning of its longer-term strategy to expand into the “wider financial services sector”.

“Over the course of the next decade, we have a vision for the firm to continue developing into a leading, independent Australian financial services business”.

While refraining from disclosing specific details about the firm’s future plans beyond the realm of super, Betashares chief executive officer Alex Vynokur confirmed to ifa that advice is not on the agenda.

“On that I can be more categorical, we’ve got no desire to move into financial advice,” he said.

“What we do have a desire to do is assist our financial adviser clients to add value to their clients, basically, and our common clients.

“And that’s really what’s motivating us, certainly, with superannuation, and that’s what’s motivating us in terms of some of the other areas that we are exploring in terms of broadening our range of services.”

Mr Vynokur said helping Australians achieve financial progress is a “very significant part” of Betashares’ DNA.

“We want to help Australians save. We want to help Australians invest. We want to help Australians make smarter financial decisions, basically,” he said.

“That’s really the ethos behind our business and we certainly will continue looking for opportunities to innovate and looking for opportunities to bring value to our clients and that’s both the self-directed investor base, as well as financial advisers. So we want to enable advisers at the same time to help their clients achieve those goals.”

To date, Betashares has amassed more than $30 billion in assets under management and has over 1 million clients in Australia.

In announcing the firm’s entry into the super industry last week, Mr Vynokur said: “For most Australians, superannuation is the largest asset outside of the family home and plays a key role in each Australian’s wealth journey and retirement outcomes”.

“As such, while ETFs will always remain the bedrock of our business, we are equally determined to bring our ethos of diversification, cost effectiveness, investor education, and engagement into the superannuation sector, and it is a natural next step in our growth strategy.

“We have been actively exploring entry strategies for some time and have a long-term plan to significantly invest in building our superannuation presence.”

The planned acquisition of Bendigo Superannuation from Bendigo and Adelaide Bank remains subject to regulatory approvals and is expected to be completed in 2024. Bendigo Superannuation currently has assets of $1.4 billion and more than 19,000 members.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.