Wall Street's Next Prize Is a $2 Trillion Australia Pension Pot

Australia's superannuation system, over 30 years old, is experiencing significant growth due to compulsory employer contributions, wage growth, and high employment levels. This has led to an influx of funds, necessitating strategic investments. The industry is expanding globally, with major funds opening overseas offices and enhancing internal teams. The competitive landscape requires funds to adapt by offering better analytics and research services to maintain growth.

What is the current contribution rate for the superannuation system in Australia?

• 12%

• 11%

• 10%

• 9%

What is one of the main reasons for the exponential growth of the superannuation industry in Australia?

• Reduction in employer contributions

• Increase in wage growth

• Decline in domestic investments

• Decrease in employment levels

What is a significant challenge faced by large funds due to their growing size?

• Decreasing contribution rates

• Finding investment opportunities

• Raising capital

• Reducing employee numbers

How are funds like Australian Super adapting to their growing size?

• Closing domestic offices

• Decreasing their asset management

• Increasing internal investment teams

• Reducing overseas offices

What additional services are external managers offering to superannuation funds?

• Increased domestic investments

• Lower contribution rates

• Reduced overseas presence

• Better analytics and research