Australia’s superannuation sector is becoming increasingly concentrated among a small group of mega funds, with the number of funds managing more than $100 billion in assets continuing to climb, according to KPMG’s latest Super Insights report.
The report found the super system now oversees an excess of $4.5 trillion in assets, equivalent to around 150 per cent of Australia’s GDP, while the 24 largest funds collectively account for more than 95 per cent of total assets across the sector.
KPMG said the number of mega funds had risen again over FY25, reflecting ongoing consolidation and strong investment growth across the industry.
“As the system grows and mega funds continue to emerge, the winners will be those that can convert scale into consistently better outcomes, which includes not only a strong performance, but also stronger member experiences and robust safeguards,” said KPMG superannuation advisory lead Lisa Butler-Beatty.
The report showed market share held by mega funds increased from 63.1 per cent in FY24 to 67.5 per cent in FY25, with Cbus becoming the latest fund to surpass the $100 billion threshold after growing assets above $102 billion.
AustralianSuper remains the nation’s largest super fund with $389 billion in assets as at 30 June 2025, followed by Australian Retirement Trust (ART) on $351 billion, Insignia on $207 billion and Aware Super on $200 billion.
Hostplus recorded the strongest annual growth among the mega funds, with assets rising 17 per cent over FY25, while ART grew 16 per cent following the transfer of Qantas Super into the fund.
KPMG said the industry’s consolidation trend continued to favour larger players, with funds holding between $25 billion and $50 billion in assets recording the strongest growth due to merger activity throughout the year.
The report pointed to several major transactions over FY25, including the merger of Vision Super and Active Super, the transfer of Goldman Sachs & JB Were Superannuation Fund into Mercer Super, and the commencement of TelstraSuper’s merger with Aware Super.
Industry funds also continued gaining market share, rising from 40.0 per cent to 40.3 per cent of total assets during FY25, while retail funds slipped slightly to 22.5 per cent.
Over the past five years, industry funds have increased their market share from 29.6 per cent to 40.3 per cent.
Despite the growing dominance of mega funds, KPMG said competitive pressure remained strong across the sector, particularly among platform providers such as HUB24 and Netwealth, which continued attracting advisers and member inflows through FY25.
