Australia's superannuation system is the fourth largest funds-management market in the world. The Superannuation Funds Management Services industry has been boosted by recovering equity markets and consistent growth in contributions over the past five years. This has ensured a steady flow of retirement savings into the market, to the great benefit of industry investment managers. Over the five years through 2015-16, industry revenue is projected to rise by an annualised 6.5%. This strong revenue growth is expected to continue in 2015-16, with revenue forecast to rise by 7.4% to reach $4.2 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. Therefore, investment managers can earn some performance commissions despite delivering losses.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.