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Internally managed assets have more than doubled in five years—rising from an estimated $227 billion in 2020 to $550 billion in 2025, according to Rainmaker Information’s analysis from the latest Institutional Roundup Report.
This shift is reshaping investment operating models across the sector and redefining how funds engage with external investment managers.
Internalisation has accelerated, particularly among the biggest and fastest‑growing super funds
“Many of the larger funds now possess the scale, governance structures and in‑house capabilities to manage significant portions of their aggregate portfolios directly,” said Dr. David Gallagher, executive director of Research at Rainmaker Information.
“Liquid asset classes— especially equities and fixed income—have been the primary areas of internal expansion.”
“Super funds are increasingly confident of bringing larger amounts of their fund assets in‑house, particularly where they believe it strengthens member outcomes.”
“What we’re 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.”
The research also highlights that the proportional shift toward internalisation has been gradual, with the headline increase in internal assets largely driven by extraordinary system‑wide asset growth.
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.
As a result, even as the share of externally managed assets declines modestly, the absolute amount allocated to external managers has continued to rise.
“Super funds are engaging external managers from a position of greater strength and clarity, and managers who can demonstrate consistent long‑term performance, specialist expertise, or access to capacity‑constrained strategies remain incredibly important in meeting fund objectives,” said Gallagher.
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.
Despite this, UniSuper had reduced its overall percentage of funds being managed internally since 2020, whereas AustralianSuper, Aware Super, Brighter Super, Cbus and HESTA have all increased their internalisation.
Across the broader industry, super funds continue to employ an average of 37 external managers, demonstrating the enduring role of multi‑manager structures despite internalisation trends.
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Internally managed assets have more than doubled in five years—rising from an estimated $227 billion in 2020 to $550 billion in 2025.
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