$13.4bn
$X.Xbn
14,674
152
$X.Xbn
Growth in contributions has boosted the sizes of funds under management (FUM) in recent years. This trend has ensured a steady flow of retirement savings into the market, which has benefited incomes for superannuation fund managers. The majority of a manager's income is typically generated through management fees that operators levy on their FUM. The value of FUM fluctuates according to the flow of funds and the performance of investment markets. However, recent regulatory reviews, the growing number of investors switching to self-managed superfunds (SMSFs), and rising competition have softened income growth for managers. Overall, superannuation fund manager revenue is expected to rise by 0.1% over the five years through 2023-24, to $13.4 billionMuch of the FUM growth and therefore income growth, over recent years has been due to a rise in the rate of compulsory superannuation contributions paid by employers. The minimum employer contribution, known as the Superannuation Guarantee, rose to 11.0% in July 2023, compounding the flow of superannuation contributions into the industry's FUM. Fund managers also receive performance fees and successive increases to the All Ordinaries Index, buoyed by record business profit, despite inflationary pressures, has boosted fees for some fund managers. However, broader sharemarket volatility both domestically and globally amid rising interest rates internationally, has seen many fund manager's scramble to reweight their investment portfolios to take advantage of changing macroeconomic trends. Fund manager incomes are set to jump by 5.9% in 2023-24 alone.Superannuation fund managers are projected to continue growth over the coming years, assisted by growing amounts of FUM and easing inflationary pressures. Despite a rising superannuation fund asset base, changes mandated by the Federal Government's Superannuation package, along with older Australians drawing down their savings, are projected to limit a rise in FUM, which in turn can constrain incomes for managers. Australia's sizable pension fund system has the potential to attract more foreign multi-disciplinary wealth management services firms, competing on both price and performance. This trend is likely to see profit margins stabilise overt the coming years with domestic firms accepting lower margins. Overall, industry revenue is forecast to grow at an annualised 0.9% over the five years through 2028-29, to $14.0 billion.
Industry revenue has grown at a CAGR of 0.1 % over the past five years, to reach an estimated $13.4bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
Colonial Holding Company Limited | 402.0 | |
Marsh Mercer | 402.0 | |
First Sentier Investors Holdings | 268.0 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Industry revenue is measured across several distinct product and services lines, including Cash and deposits, Domestic debt securities and Australian equities and trusts. Cash and deposits is the largest segment of the Superannuation Funds Management Services in Australia.
A depreciating Australian dollar has benefited returns on overseas assets
Industry participants provide investment management, administration and advisory services to superannuation funds. Service fees are earned as a percentage of the funds under management, administration or advice. Investment managers also receive commissions based on performance, with a portion determined by absolute returns and the rest by industry benchmarks. Consequently, investment managers can earn some performance commissions despite delivering losses.
Purchase this report to view all 3 major companies in this industry.
ANZSIC 6419 - Superannuation Funds Management Services in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Continued strong contributions to superannuation funds have provided managers with greater amounts of assets to invest. A heightened superannuation guarantee and low unemploy...
Learn about an industry's products and services, markets and trends in international trade.
Typical investment strategies available to investors include balanced fund options, growth options, cash and property. Most funds keep a certain share of their assets under m...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
New South Wales and Victoria are home to the majority of superannuation fund managers nationally. The supply of experienced labour in Melbourne and Syndey are great attractor...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
The largest superannuation fund managers are comprised of the wealth divisions of larger financial institutions. For example, the big four banks have varyingly committed them...
Learn about the performance of the top companies in the industry.
The largest superannuation fund managers are multidisciplinary financial services company that have branched into superfund management. They can leverage significant access t...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
As the industry is involved in the management of Australians' retirement savings, regulation is in place to ensure the proper and responsible management of funds. The size of...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Larger fund managers benefit considerably from economies of scale as they can spread a greater capital over different investment and administrative functions. This scale is c...
Including values and annual change:
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Unlock comprehensive answers and precise data upon purchase. View purchase options.
The market size of the Superannuation Funds Management Services industry in Australia is $13.4bn in 2024.
There are 152 businesses in the Superannuation Funds Management Services industry in Australia, which has declined at a CAGR of 4.4 % between 2018 and 2023.
The market size of the Superannuation Funds Management Services industry in Australia has been growing at a CAGR of 0.1 % between 2018 and 2023.
Over the next five years, the Superannuation Funds Management Services industry in Australia is expected to grow.
The biggest companies operating in the Superannuation Funds Management Services market in Australia are Colonial Holding Company Limited, Marsh Mercer and First Sentier Investors Holdings
Cash and deposits and Domestic debt securities are part of the Superannuation Funds Management Services industry.
The company holding the most market share in Australia is Colonial Holding Company Limited.
The level of competition is moderate and increasing in the Superannuation Funds Management Services industry in Australia.