Australian ETF giant cracks $50 bill FUM

Betashares says it has reached A$50 billion in funds under management, marking a significant milestone for the business.

The company is currently transforming into a diversified financial services business, in partnership with a growing client base of more than one million investors and financial advisers.

While it offers PIE funds in New Zealand it also has managed accounts, diversified portfolios, and an investment platform, Betashares Direct. The company has recently expanded into Australia’s $3.9 trillion superannuation industry, with the acquisition of Bendigo Superannuation.

The company was launched in December 2010 and has grown ETF assets under management by 56.9% annually, outpacing the broader ETF industry, which has grown by 31.5% annually in that time.

Last year Singapore’s sovereign wealth investment company, Temasek, took a strategic investment in Betashares, which the company says "is helping accelerate a range of growth initiatives, including new products, services and technologies."

Betashares Founder and chief executive, Alex Vynokur, said the milestone was an opportunity to reflect on the progress made by the firm and the value of its deepening partnerships with clients.

“For nearly 15 years, we have worked hard to build a long-standing partnership with our clients. As a trusted steward of capital on behalf of our clients, we deeply appreciate the importance of trust and we are looking forward to continuing to strengthen this partnership in the years and decades ahead."

The milestone for Betashares comes as the Australian ETF industry continues on a strong upward trajectory. Despite the strong growth of the industry over the past decade, adoption of ETFs in Australian portfolios has significant scope to accelerate further, when compared to a number of developed markets.

“The runway for growth for Betashares remains very long, and we’re working hard to build out our capabilities and services to help more Australians grow their wealth,” Vynokur said.