Superannuation Funds Management Services in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC K6419dRevenue
$13.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
14,674
Businesses
152
Wages
$X.Xbn
Superannuation Funds Management Services in Australia industry analysis
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.
Trends and Insights
- Continued strong contributions to superannuation funds have provided managers with greater amounts of assets to invest. A heightened superannuation guarantee and low unemployment have compounded this trend.
- 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 management in low-risk asset classes, such as deposits and loans.
- 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 attractors for businesses.
- The largest superannuation fund managers are comprised of the wealth divisions of larger financial institutions. For example, the big four banks have varyingly committed themselves to superannuation fund management in Australia.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.1 % over the past five years, to reach an estimated $13.4bn in 2023.
Trends and Insights
Growing superannuation contributions are boosting FUM for fund managers
- Recent sharemarket uncertainty and interest rate rises have stymied some growth seen in funds under management (FUM).
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Continued increases to the Superannuation Guarantee will support managers' funds under management
- Continued increases to the Superannuation Guarantee (SG) will continue in increments of 0.5% till it hits 12.0% in July 2025.
Biggest companies in the Superannuation Funds Management Services in Australia
| Company | Market Share (%)
2024 | Revenue ($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.
Products & Services Segmentation
Source: IBISWorld
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.
Trends and Insights
A depreciating Australian dollar has benefited returns on overseas assets
- Investments in overseas assets includes both debt and equity securities. Australia's relatively small financial markets and strong growth in funds over the past decade have driven asset managers to look overseas for opportunities.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Superannuation Funds in Australia
- Custody, Trustee and Stock Exchange Services in Australia
- Investment Banking and Securities Brokerage in Australia
- Funds Management Services in Australia
International industries
- Funds Management and Other Investment Services in New Zealand
- Pension Funding in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Cash and depositsDomestic debt securitiesAustralian equities and trustsPropertyOverseas assetsLoans and placementsDerivativesNon-financial assetsCompanies
Colonial Holding Company LimitedMarsh MercerFirst Sentier Investors HoldingsPurchase this report to view all 3 major companies in this industry.
Related Terms
FUNDS UNDER MANAGEMENT (FUM)MANAGEMENT EXPENSE RATIOSELF-MANAGED SUPERANNUATION FUNDSIndustry Code
ANZSIC 6419 - Superannuation Funds Management Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Continued strong contributions to superannuation funds have provided managers with greater amounts of assets to invest. A heightened superannuation guarantee and low unemploy...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
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...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
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...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
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...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The largest superannuation fund managers are multidisciplinary financial services company that have branched into superfund management. They can leverage significant access t...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Colonial Holding Company Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Marsh Mercer's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of First Sentier Investors Holdings's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Colonial Holding Company Limited, and factors influencing its performance in the industry
- Description and key data for Marsh Mercer, and factors influencing its performance in the industry
- Description and key data for First Sentier Investors Holdings, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
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...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
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...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
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.
What data sources do IBISWorld analysts use?
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:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
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:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
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.
How does IBISWorld forecast its data?
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.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Superannuation Funds Management Services industry in Australia in 2024?
The market size of the Superannuation Funds Management Services industry in Australia is $13.4bn in 2024.
How many businesses are there in the Superannuation Funds Management Services in Australia industry in 2023?
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.
Has the Superannuation Funds Management Services industry in Australia grown or declined over the past 5 years?
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.
What is the forecast growth of the Superannuation Funds Management Services industry in Australia over the next 5 years?
Over the next five years, the Superannuation Funds Management Services industry in Australia is expected to grow.
What are the biggest companies in the Superannuation Funds Management Services market in Australia?
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
What does the Superannuation Funds Management Services in Australia include?
Cash and deposits and Domestic debt securities are part of the Superannuation Funds Management Services industry.
Which companies have the highest market share in the Superannuation Funds Management Services in Australia?
The company holding the most market share in Australia is Colonial Holding Company Limited.
How competitive is the Superannuation Funds Management Services industry in Australia?
The level of competition is moderate and increasing in the Superannuation Funds Management Services industry in Australia.
