Value of managed funds in Australia - Data and Analysis (1989-2034)

IBISWorld forecasts the value of managed funds to rise by 5.4% in 2026-27, to reach $5,480.0 billion. The value of managed funds is largely driven by the performance of the All Ordinaries stock market index, which is expected to rise at a robust pace over the year. Australian superannuation funds, which make up a large proportion of managed funds in Australia are also heavily invested in international equities markets in for example, the United States and the United Kingdom. The S&P 500 and the FTSE 100 indexes are projected to rise strongly over the year due to the ongoing strength of technology (especially AI) stocks in the former and real estate and banking stocks in the latter, further contributing to the expansion in the value of managed funds in 2026-27.Australian managed funds growth has been driven by strong equity gains, consistent net inflows, particularly from compulsory superannuation and a favourable economic backdrop. The ASX 200 generated a 7.5% price return over the 2024 calendar year, while gold prices soared 27% (which also helped boost the ASX 200) during the same period, reinforcing resource sector outperformance. Net inflows, especially from compulsory superannuation, closely tracked these equity gains, supported by adviser confidence and improved wholesale allocations. The RBA's maintenance of a 4.10% cash rate alongside a reduction in inflation to 2.9% in Q1 2025 is contributing to a stable monetary environment, compressing real yield volatility and lowering discount rates, factors which collectively supported elevated asset valuations and encouraged continued capital allocation into managed super funds. Meanwhile, the unemployment rate remained near historic lows at 4% as of March 2025 and the Superannuation Guarantee rose to 11.5% in July 2024. Collectively, these factors have grown Australian managed funds' valuations by creating more inflows, thereby driving growth in fund assets.A hike in interest rates from record lows slowed investment equities market in 2022-23, constraining growth in the value of managed funds. However, growth in the value of managed funds has risen strongly since then, as volatility in asset prices has largely been offset by climbing superannuation contributions. Disposable income growth has driven an expansion in the value of superannuation funds, in turn boosting the value of managed funds over the period. Successive increases of the current superannuation guarantee rate to 12.0% in July 2025 have amplified the benefit of stable superannuation contributions to the value of managed funds. Overall, IBISWorld forecasts the value of managed funds to grow at a compound annual rate of 4.4% over the five years through 2026-27.