Rainmaker launches Market Entry Report
Rainmaker Information
Rainmaker Information has published the Market Entry Report – Investment Management in Australia. The study showcases the size, scope and structure of Australia’s wealth management landscape.
The Market Entry Report explores how an investment manager, both domestic and international, can establish and operate a managed investment scheme, whether this is offered to superannuation (pension) funds at the institutional level, or via the intermediary market which includes financial advice groups, platforms and managed accounts.
The report explores the regulation, history, market size, key intermediaries and governance considerations for operating a managed investment scheme in Australia.
International investment managers currently manage 44.9% of Australia’s investment market.
Meanwhile allocation to international equities has increased by 16% to 24% since the 1990s, while Australian equities allocation has fallen from 30% to 23%.
“Australia’s investment management market is one of the most disruptive and competitive sectors in the world,” said Dr. David Gallagher, executive director of research at Rainmaker Information.
“Australia enjoys a world-class investment management sector, renowned for the skills of the professionals who work in the industry, and has thrived over the past three decades as a result of entrepreneurship, innovation, and the sizable growth of our national savings pool, where superannuation (pension) assets rank fourth in the world."
“The success of the industry can also be observed from the increasing focus of offshore investment capabilities being run out of global financial headquarters, including New York and London.”
Foreign-owned firms control 66.9% of comprehensive ‘big-brand’ investment managers’ business, and 29.5% of boutique and specialist investment managers’ business combined.
Total estimated gross inflows into Australia’s investment management industry (superannuation and managed funds) over the past decade was A$597.7 billion for the year to June 2025.
“Fund flows in 2025 were running at 1.5 times the 10-year average,” said Gallagher.
67% of these flows were sourced from contributions into superannuation funds and 33% sourced from non-superannuation managed funds.
The compulsory superannuation guarantee is currently set at 12% of wages and salaries being paid into an employees’ superannuation account, and this equates to 68% of total contributions, with the remaining 32% being additional, voluntary contributions.
| A$ billion | Segment share | Share of category | ||
| Superannuation | Placed through fund managers | 2,771 | 52% | 64% |
| Directly managed | 1,558 | 29% | 36% | |
| Subtotal | 4,329 | 81% | 100% | |
| Investment | Investment platforms | 383 | 7% | 39% |
| Managed funds (i.e. mutual funds) | 607 | 11% | 61% | |
| Subtotal | 990 | 19% | 100% | |
| Total | 5,319 | 100% |
Australia’s superannuation market now holds A$4.3 trillion in funds under management and is expected to grow to A$8.5 trillion by 2035, according to Rainmaker Information.
Superannuation now holds 72% more than Australia’s gross domestic product.
“The larger super funds are internalising some investment management capabilities, but a growing market alongside increased allocation to international equities and alternatives will present opportunities to international managers particularly due to their on-the-ground insights to equities in their region, be it in the US, UK, Europe, Asia or elsewhere.”
About us:
About Rainmaker Information
Rainmaker Information, founded in 1992, is a leading Australian-based financial services information publishing house providing marketing intelligence, research, and consulting services on the wealth management industry.
Rainmaker gathers and generates in-depth marketing intelligence with industry research, data, professional development and media capabilities. These resources can be accessed with a subscription to the Rainmaker MarketPro terminal.
Rainmaker Information is owned by Institutional Shareholder Services (ISS) and is part of its ISS Market Intelligence business.
About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry.
ISS MI empowers global asset and wealth management firms, insurance companies, distributors, service providers, and technology firms by providing cutting-edge market-engagement platforms and the actionable intelligence necessary to fully assess their target markets, identify and analyse the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business.
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Contact details:
Julian Clarkstone
P. 02 8234 7514
E. [email protected]