Next year is shaping up to be a busy one for mergers in the superannuation industry. QSuper’s potential tie-up with Sunsuper to create a $180 billion fund is said to be just one of a number of deals that will be announced in the next 12 months.
The argument that bigger fund leads to better returns is largely dependent on liquidity and opportunity size. Further, the evidence on the benefits of scale is not encouraging so far, says Michael Kollo.
There are powerful forces changing the quantitative communities around the world. These include heavy competition in asset management, a desperate need to stand-out in an overcrowded field and readily available datasets and coding libraries.