Vanguard Australia has launched its new MySuper product to the Australian market.
👉 Background: Vanguard is an American investment manager with around $11 trillion in assets under management. In fact, it is the world’s second-largest asset manager.
👉 What happened: Years after first whispers, Vanguard Australia has launched its new MySuper product to the Australian market. This is a pretty major move because it is the first new player in the super industry to gain a licence in years.
👉 What else: For many years, other super funds have invested in Vanguard's investment products. But now, Vanguard is abandoning that business model in search of the big bucks to compete directly in the enormous super industry.
💡The super industry is unique because size and scale is essential to survival. In super, if a fund doesn’t get to the right size quickly enough, it either has to merge with another fund, or sometimes even close down
💡 The threshold for what’s considered big enough is generally believed to be in the range of $30 billion to $50 billion in member balances.
💡But with Vanguard's existing size and scale in its asset management, it reckons it can stand out with the lowest yearly fees in the market and supercharge its way to size and scale in super.
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