You would think that when it came to managing money the Reserve Bank of Australia would be very confident of its abilities. But Fairfax Media has reported that the RBA is wrapping up its staff super fund worth a cool $1.25 billion and sending it over to industry fund Sunsuper to look after.

Sun is a big hitter with $35 billion under management. Despite the fact that the RBA fund is one of the largest in the corporate sector and boasts above average returns over a long period, management feels Sun can do a better job for its 3000 or so members.

“Following a stringent review process we have appointed Sunsuper to take over management of the RBA Officers’ Super Fund and we expect the transfer to be finalised in the first half of 2017,” an RBA spokesman told AFR Weekend.

The move is part of a trend that is seeing small funds pressured by higher relative management costs than their larger peers. That pressure is added to by the fact that as the population ages smaller funds risk shrinking as their members retire and start to draw on their super savings as The New Daily reported earlier.

Fairfax reported on research by consulting firm Third Horizon showing  that the RBA Officers’ Super Fund was one of 23 funds that reported a negative result across three key metrics for long term viability in the financial year ended June 30, 2015.

Others on the list included funds run by Holden, BlueScope Steel, Alcoa, and Kellogg. Industry funds listed include Meat Industry Employees, Equipsuper and Quadrant.

Roughly 45 per cent of APRA-regulated funds had a net outflow ratio exceeding 100 per cent for the year ended June 2015, meaning more money left the fund than came in. APRA data also indicates that more than 20 per cent of funds experienced a decline in net assets over that period.

Even the mighty BHP Billiton has joined the amalgamation path, tipping its super fund into MLC Super.

The New Daily is owned by a group of industry super funds.