Super Industry 2026

The continued rise of mega-funds

Mega-funds continue their expansion while the contraction of small and medium funds also continues. Organic growth was the primary driver of growth among mega-funds, with limited merger activity in 2024-25.

Merger momentum is changing shape

Merger activity is increasingly focused on combinations among mid-sized funds, where alignment across culture, governance, product and operations becomes paramount. Success increasingly comes from focus on strategic alignment and long-term value realisation.

Organic growth is increasingly market driven, not demographic

Member decisions are driving a decline in net cashflows for the majority of industry funds with funds flowing to a selection of retail funds, in particular those with platform investment offerings.

Trustees under scrutiny for platform governance

The collapses of the Shield and First Guardian managed funds have heightened regulatory focus on governance and oversight of platform investment offerings. Regulators have reinforced expectations that trustees must ensure all investment options, including platform offerings, are genuinely fit for purpose, backed by robust due diligence, actively monitored, and aligned with member outcomes.

Retirement income emerges as the strategic priority

Retirement income is shifting from a compliance obligation to a strategic priority. Regulatory guidance, enhanced reporting requirements and demographic change are lifting expectations across the industry, exposing a growing divide between funds embedding retirement income as a core strategic focus and those yet to move beyond compliance.