Superannuation Funds Management Services in Australia - Market Research Report (2014-2029)

Super flies: A rise in the superannuation guarantee rate is supporting asset and revenue growth

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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 billion

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.