Wrap sector drives net inflows as platform outflows persist

There was a net fund inflow of $46.6 billion into master fund products over the year, a sharp improvement from the modest inflows recorded in 2024.

Growth was overwhelmingly led by the wrap sector, while platforms recorded net outflows for a fifth consecutive year, according to Rainmaker Information’s PFL Managed Funds Report.

Wraps were the standout contributor in 2025, generating net inflows of $46 billion, accounting for almost all net growth across the master fund landscape, while also recording:

• $173.7 billion in inflows, up nearly 20% year-on-year

• Funds under management of $824.2 billion, up 12.8% for the year

• 62% of total master fund assets

“Strong adviser adoption, continued momentum among high-growth platforms, and improving investor sentiment contributed to the growth of the wrap sector,” said David Gallagher, executive director of research at Rainmaker Information.

“Among wraps, market leaders Macquarie and BT retained their scale positions, while HUB24 and Netwealth again recorded the strongest percentage growth, reflecting ongoing adviser preference for modern, highly functional wrap solutions.”

“Wrap platforms are continuing to absorb the bulk of industry net inflows, reinforcing the long-term structural shift away from traditional platform models.”

Platforms remain in net outflow despite asset growth

Despite funds under management rising to $431.0 billion, up 6.7%, the platform segment recorded a net outflow of $2.0 billion in 2025.

Inflows of $55.5 billion were more than offset by $57.5 billion in outflows, with net outflows occurring in nine of the last 10 years.

“While several providers — including Colonial First State, Mercer, AMP and fast-growing niche operators — delivered positive asset growth, the sector continues to face client migration to wrap solutions, ongoing pension draw downs and competitive fee and product pressure,” said Gallagher.

Master trusts deliver steady positive flows

Master trusts recorded a net inflow of $2.6 billion in 2025, with funds under management rising to $67.9 billion, an annual increase of 10.6%.

“Although representing just 5.1% of total master fund assets, the segment delivered positive net flows, supported by strong growth at established providers and exceptional percentage growth from smaller, newer entrants off a lower base.”

“We can expect the underlying structural trends shaping the master fund market to continue through 2026, with wraps remaining the primary growth engine, platform consolidation continuing, while scale, technology capability and adviser engagement increasingly determine market share shifts,” concluded Gallagher.

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