Growth Driven by Asset Expansion
Australias largest superannuation funds have significantly increased their internal investment management, with assets rising from $227 billion in 2020 to $550 billion by the end of 2025, according to a report by Rainmaker Information. This represents more than doubling of internally managed assets in just five years.
The investment operating models in the superannuation sector are undergoing a transformation as funds enhance their in-house capabilities and redefine their engagement with external investment managers. These changes are propelled by the ability of larger funds to directly manage significant portions of their portfolios.
Dr. David Gallagher, Executive Director of Research at Rainmaker Information, stated, “Many of the larger funds now possess the scale, governance structures, and in-house capabilities to manage significant portions of their aggregate portfolios directly.” Liquid asset classes, especially equities and fixed income, have been the primary areas of internal expansion.
Super funds are increasingly confident in bringing more assets in-house, aiming to enhance member outcomes. The shift toward internalisation has been gradual but significant. Over the five years to December 2025, total superannuation assets grew by approximately $1.4 trillion, expanding the capital pool available to both internal and external managers. Despite the rise in internal management, external managers remain crucial.
“What were seeing is not a retreat from external managers, but a more deliberate and value-focused approach to how external mandates can complement their total portfolio approach,” Gallagher explained. This approach allows funds to engage external managers from a position of greater strength and clarity.
UniSuper retains its position as the super fund with the highest levels of internal investment management, both in dollar terms and proportion of assets managed internally. However, since 2020, UniSuper has slightly reduced its internal management share. Meanwhile, AustralianSuper, Aware Super, Brighter Super, Cbus, and HESTA have all increased their internalisation efforts. This shift reflects a broader industry trend toward internal management.
Super funds continue to employ an average of 37 external managers, underscoring the enduring role of multi-manager structures despite internalisation trends. External managers who can demonstrate consistent long-term performance, specialist expertise, or access to capacity-constrained strategies remain important in meeting fund objectives. Rainmaker Information, established in 1992, provides crucial insights into these industry shifts as a leading Australian-based financial services information publishing house.
Last updated: 10 April 2026, 1:49 pm
