The prominence of superannuation (super) in Australia means superannuation funds management is big business. Australia's funds management market is the fourth-largest in the world. Much of this is due to the nation's $1.4 trillion superannuation system, which ensures a steady flow of retirement savings into the market. Investment managers have benefited from this flow. As at September 2012, an estimated 44.3% of the $1.27 trillion in funds under investment managers were in the form of superannuation savings.
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.