The $4 Trillion Super Secret: Why Advisers Choose Differently

Every quarter, there are several certainties when APRA releases their superannuation statistics. The commentary will focus on how many trillions of dollars are now in the superannuation system (over $4 trillion for those that are keeping score) and how many hundreds of millions the largest super funds are investing (somewhere in the $100 to $400 million range at present) for their how many million members (1 to 4 million). 

While APRA statistics consistently show industry funds dominating overall assets and membership, early analysis from our upcoming 2025 Australian Financial Advice Landscape Report reveals a stark contrast in adviser preferences and fund flows.

Industry Giants vs. Adviser Favourites

According to APRA's December 2024 Quarterly Superannuation Statistics, the six largest superannuation funds in Australia by total assets are all industry or public sector funds:

1. AustralianSuper ($367M)
2. Australian Retirement Trust ($309M)
3. Aware Super ($189M)
4. UniSuper ($138M)
5. Hostplus ($124M)
6. Public Sector Superannuation ($114M)

If we wanted to count by member accounts, the list would be similar, with REST at number 3 and HESTA at 6. As we know, these industry behemoths dominate the overall superannuation landscape through their default status in employment agreements, broad marketing reach, and scale advantages.

However, early data from our 2025 Australian Financial Advice Landscape Report shows a dramatically different picture in the advised market. Our preliminary Net Promoter Score (NPS) analysis reveals that advisers overwhelmingly favour retail funds, with the top performers being (alphabetical order):

- BT Super
- CFS FirstChoice Superannuation Trust
- HUB24 Super Fund
- IOOF Superannuation (including Expand)
- MLC Super Fund
- Netwealth Superannuation Master Fund
- North Super and Pension Fund

This preference is also reflected in ProductRex fund flow data (see figures 1 and 2 below), which shows that for the same quarter covered in the APRA report, the funds experiencing the highest intended net outflows, based on adviser modelling, were predominantly the industry funds listed above. In contrast, those with the highest inflows were retail offerings listed above.

Figure 1: 3-month Top 20 Net Outflows - Platform/Super

Figure 2: 3-month Top 20 Net Inflows - Platform/Super Fund

The Economics Driving the Divide

This divergence reflects the economic realities of financial advice practices in 2025. With mandatory expenses, including licensee services, PI insurance, and regulatory levies totalling $36,896-$83,877 per adviser annually, practices must maximise operational efficiency to remain viable.

This operational efficiency drive has a clear outcome when it comes to preferences for managing a client's superannuation investments as an adviser. "The economics of advice delivery have fundamentally changed," notes Angus Woods, Managing Director of Adviser Ratings. "Practices can no longer afford inefficient processes or systems that don't integrate seamlessly with their core technology stack."

Technology Integration: The Efficiency Imperative

The 2024 Landscape Report found that practices leveraging integrated technology solutions operate with 55% fewer staff while maintaining high service standards. These technology-savvy practices achieve profit margins between 24-40%, compared to just 14-20% for practices without such integration.

Retail superannuation platforms have invested heavily in creating seamless connections with popular adviser software systems to support this. This integration eliminates the manual data entry and reconciliation processes that plague advisers when working with less technologically advanced funds. Adopting the use of separately managed accounts (SMA), which are revolutionising how advisers monitor and report on client portfolios, is another example of advice practises searching out efficiency. Retail platforms have been at the forefront of adopting these standards, creating significant efficiency gains.

Bridging the Digital Advice Divide

There remains a significant gap between consumer expectations for digital advice and the current offerings in the market. Retail platforms are actively working to bridge this gap through enhanced digital capabilities.

Modern advice clients expect comprehensive, real-time visibility of their financial position. Retail platforms typically offer more sophisticated client portals, more frequent portfolio updates, and better digital experiences than many industry fund alternatives.

The ability to provide clients with integrated views of their entire financial position—not just superannuation—has become a key differentiator for advice practices. Platforms that enable the aggregation of banking, investment, lending, and superannuation data into a single dashboard create significant engagement advantages.

Leading platforms now incorporate sophisticated communication and education tools that help advisers maintain ongoing client engagement. Practices using these tools report 31% higher client engagement scores and significantly improved financial literacy among their client base.

Strategic Implications

This market bifurcation carries important implications for various stakeholders:

For Financial Advisers

The early analysis of the 2025 Adviser Rating Landscape Report survey data and Product Rex fund flow intention data validates the strategic shift toward platforms that enhance practice efficiency and client outcomes. However, advisers must ensure their platform selections remain aligned with the client's best interests, particularly for clients with simpler needs where industry fund fee advantages may outweigh platform capabilities.

"The platform decision is increasingly strategic rather than tactical," notes Woods. "It affects every aspect of the advice business, from client acquisition to service delivery to practice profitability."

For Superannuation Providers

Industry funds seeking to increase their adviser market share must address integration capabilities for implementation and reporting and adviser support services. Several have begun investing in these areas, but significant gaps remain relative to specialised retail platforms.

Meanwhile, retail platforms should continue enhancing their efficiency tools while maintaining competitive fee structures as industry funds work to close the technology gap.

For Consumers

This research highlights the potential value of professional advice in navigating superannuation complexity. While unadvised investors typically gravitate toward industry funds' simplicity and low headline fees, advised clients may benefit from more sophisticated platform capabilities that better suit complex financial situations.

Consumers should consider not just the headline fees of different superannuation options but also the potential value added through enhanced investment options, tax management capabilities, and comprehensive financial planning when working with an adviser.

Looking Forward

As efficiency pressures intensify, the adviser-led superannuation market will likely continue its distinct trajectory from the broader market. Implementing the Quality of Advice Review recommendations, which aim to streamline advice processes, will be enhanced by leveraging integrated platforms and may accelerate this trend.

We anticipate continued consolidation in both the platform and advice markets. Platforms that fail to achieve the scale necessary to support ongoing technology investment will struggle to retain market share.

Both retail and industry funds will face increasing pressure to innovate, particularly in areas like digital advice, personalisation, and retirement income solutions. The funds that successfully combine technological innovation with human expertise will be best positioned for long-term success.

However, we also expect industry funds to respond with enhanced adviser offerings, potentially narrowing this divide in the coming years. Several major industry funds have already announced significant investments in adviser-facing technology and support services.

The superannuation market's bifurcation demonstrates how professional financial advice creates distinct market dynamics driven by different priorities than those of the unadvised market. For advisers navigating this landscape, the key lies in selecting platforms that enable efficient practice management while still delivering optimal client outcomes.

*Adviser Ratings is Australia's leading source of financial adviser data and insights. Our annual Australian Financial Advice Landscape Report comprehensively analyses trends shaping the financial advice profession. The insights in this article draw from early analysis of data being collected for the 2025 edition of this report.

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