This year’s Index examines how ageing populations will impact the design and long-term sustainability of pension systems worldwide.

Marsh (NYSE: MRSH), a leading global professional services firm, and CFA Institute, the global association of investment professionals, has released the 18th annual Marsh CFA Institute Global Pension Index (MCGPI), comparing 55 retirement income systems across the globe, covering 66% of the world’s population.

As fertility rates fall and life expectancies rise, the world’s retirement income systems face mounting pressure. This year’s Index examines how ageing populations will impact the design and long-term sustainability of pension systems worldwide – and what policymakers should do to prepare.

“The decisions we make today to build sustainable systems will have a profound impact on people’s financial security. Increasing longevity is too significant to ignore, with wide-ranging impacts on individuals, governments, economies and societies. The time to act is now,” said Pat Tomlinson, President and CEO of Marsh People and Investments.

“Pension systems are under real strain,” said Christine Mahoney, the Global Defined Benefit and Defined Contribution Leader of Marsh People and Investments. “Governments that clarify their pension objectives, strengthen funding, and build flexibility into retirement design will be far better positioned to deliver dignified, secure retirements for the generations ahead.”

Mona Naqvi, Managing Director of the CFA Institute Research and Policy Center, added: “Retirement systems differ across markets, but all face the same long-term challenge: delivering reliable income as demographics shift and markets change. No single policy or investment decision can achieve that. It takes sound system design and governance, alongside careful oversight of investments by those with a fiduciary duty to savers and retirees. The test is whether those decisions work together to serve people throughout retirement and remain sound for the generations that follow.”

Adapting systems to a longer, more flexible retirement

The 2026 Index highlights three key policy responses needed to address these demographic realities: establishing clear objectives for pension systems; prioritising the funding of future retirement obligations; and increasing flexibility in pension product design and retirement age structures. Traditional retirement ages of 60 or 65 are becoming increasingly misaligned with the realities of longer, healthier lives. As the boundary between work and retirement continues to blur – driven in part by the rise of gig and part-time work – pension systems must evolve to reflect the way people live and work in later life.

“The data shows that even the best-performing systems need to keep evolving; no system can afford to stand still in the face of these demographic shifts,” commented Tim Jenkins, lead author of the report and Partner at Marsh People and Investments. “The right approach for one country, one system, or even one individual will not be the right approach for another. But what every system shares is the need to adapt. Retirement design must become more flexible – in when people access income, in how products are structured, and in how we think about the line between work and retirement. That flexibility is no longer optional.”

While disparities persist, meaningful improvements are apparent across the Index

The retirement income systems of the Netherlands, Denmark, Iceland, Singapore and Israel retained their A grade in 2026 with Index scores greater than 80. For the first time, Australia has also received an A grade. These six systems are robust: they deliver good benefits, are sustainable and have a high level of integrity.

The Index uses the weighted average of the sub-indices of adequacy, sustainability and integrity. For each sub-index, the systems with the highest values were Kuwait for adequacy, Denmark for sustainability and Finland for integrity.

This year, five retirement income systems – Australia, UAE, Oman, Panama and China – have improved their Index grade. The average value for the overall Index has increased by 1.1 points from 2025.

About the Marsh CFA Institute Global Pension Index (MCGPI)

The MCGPI benchmarks retirement income systems around the world, highlights strengths and suggests possible areas of reform that would provide more adequate and sustainable retirement benefits with a high level of integrity. This year, it compares 55 retirement income systems across the globe, including three new countries – the Dominican Republic, Kenya and Qatar – and covers 66% of the world’s population.

The Marsh CFA Institute Global Pension Index is a collaborative research project co-sponsored by CFA Institute and Marsh and is supported by the Monash Centre for Financial Studies (MCFS). Find more information about the Marsh CFA Institute Global Pension Index here.

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The rating gives advisers an independent view of the fund in a sector where demand for high quality purpose-built accommodation for people with high physical support needs continues to outpace supply.

Managing partner Tim Slattery said, “The assets we are investing in address the very real problem of bed block in Australia’s hospitals with an estimated 10% of hospital beds impacted. Here we see the potential for the asset class which not yet priced by institutional investors.

“We see a distinct parallel to healthcare real estate coming out of the global financial crisis in 2010 which was a very profitable investment.”

ASA Real Estate Partners opened the fund to wholesale investors and is raising $50 million of initial equity to acquire three newly completed assets in Dandenong, Preston and Werribee in metropolitan Melbourne, which are leased to the Equal Living Group on up to 20 year triple net leases indexed annually to CPI.

The assets provide ‘step down’ healthcare accommodation for Australians with life-changing injuries and conditions – those who cannot live long term in hospital but equally need care such that they can’t live at home.

People being cared for include members of the community who have suffered strokes, acquired brain injuries, motor neurone disease, multiple sclerosis and major physical trauma including quadriplegia and paraplegia. Each site combines long term places with short and medium term places and ground-floor allied health suites, and is operated by the Equal Living Group, a federally registered NDIS provider.

Core Property scored the fund four out of five stars for both management quality and asset quality, noting that it had reviewed the management team and considered “it has the relevant skills and experience to operate the Fund successfully”.

The three assets have been independently valued at a combined $50.7 million, and Core Property found the manager’s assumptions to be “in line with current market metrics and independent valuations”. The research house also placed the fund’s management fee at the low end of the range it sees across unlisted property funds.

Core Property’s report is also clear about the risks, noting that the fund should be considered illiquid, is suited to investors with a moderately high risk appetite and relies on the Equal Living Group continuing to run its business well.

Slattery added, “We really like alternative real asset sectors where the fundamentals of underlying occupier demand and clean cash flow are key value drivers.”

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Notes:
[1] The Core Property rating (assigned in October 2026) presented in this document has been prepared and issued by Core Property Research Pty Ltd (“Core Property”), which is an Authorised Representative ASIC number 1280479 of Core Property Research Holdings Pty Ltd (ACN 633 170 751, AFS License No. 518320) (Licensee), and trading as Core Property. Whilst the information contained in the report has been prepared with all reasonable care from sources that Core Property believes are reliable, no responsibility or liability is accepted by Core Property for any errors, omissions or misstatements however caused. Past performance information is for illustrative purposes only and is not indicative of future performance. The Core Property publication is not and should not be construed as, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any opinion contained in the Report is unsolicited general information only. Neither Core Property nor the Participant is aware that any recipient intends to rely on this Report or of the manner in which a recipient intends to use it. The rating is subject to change without notice and Core Property assumes no obligation to update the report.

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The upgrade, from the Recommended rating assigned in November 2025, comes three months after Franklin Templeton brought the strategy to the ASX as Western Asset Enhanced Income Fund – Active ETF (FEIF), giving investors a choice of access through the managed fund or a listed structure. The Lonsec rating applies to the managed fund.

For financial advisers, a ‘Highly Recommended’ rating carries considerable weight when selecting an income solution within fixed income. Research house ratings frequently inform which products are included on advice licensees’ approved product lists, and a top tier rating provides independent assurance on the quality of the manager, team and process.

In its review, Lonsec said the rating is “supported by a highly experienced and stable investment team”, and that the manager’s research, portfolio construction and risk management systems “combine to deliver an effective means of accessing an Australian and global credit portfolio targeting higher income returns.”

Lonsec rated the fund above its peers on all seven factors it assesses: business, team, process, ESG, product, fees and performance within a peer group of 34 rated Fixed Interest Specialised Income funds. The fund’s annual fees and costs of 0.50 per cent sit below the peer median of 0.52 per cent.

“This acknowledgment is an important independent endorsement of the Fund and the experienced team behind it, and one that matters to the advisers who rely on research to build income portfolios for their clients,” says Felicity Walsh, managing director of Franklin Templeton Australia and New Zealand.

The fund, managing over $565 million in assets under management, is an actively managed, short-duration credit strategy investing across Australian and global investment grade corporate credit, structured credit and a modest allocation to high yield, with all global exposures hedged to Australian dollars. It targets returns of 1.5 to 2 per cent per annum above the Bloomberg AusBond Bank Bill Index (before fees) over rolling three-year periods and pays distributions monthly.

To August 31, 2026, the fund returned 5.37 per cent over one year and 7.36 per cent per annum over three years after fees, compared with 3.99 per cent and 4.21 per cent for the benchmark. Since inception in June 2021, it has returned 4.79 per cent per annum, compared with 3.14 per cent for the benchmark.

Lonsec noted the fund has outperformed both its benchmark and peer median across all rolling periods, with lower volatility than the peer median. Over three years to June 30, 2026, the fund recorded a Sharpe ratio of 2.55, compared with a peer median of 1.56.

“The fund is built for investors whose priority is income,” says Damon Shinnick, portfolio manager at Western Asset Management. “We aim to keep interest rate risk deliberately low and focus instead on where investors are paid for taking credit risk, rotating across sectors and selecting securities across the capital structure. That allows the portfolio to generate income from running yield rather than relying on the direction of interest rates.”

“Lonsec’s upgrade reflects the depth and stability of the team behind the strategy. Our Melbourne-based team works closely with Western Asset’s global credit research and investment teams, to build a portfolio that provides a diversity of alpha sources, without sacrificing liquidity. Investors benefit from the breadth of our global team’s experience and track record, and our focus on finding value across the full spectrum of domestic and global credit markets.”

Shinnick adds that while Australian fixed income markets have seen volatility as domestic inflation concerns and higher global bond yields pushed yields higher, the backdrop for credit remains constructive.

“Global credit markets remain supported by healthy corporate balance sheets, resilient earnings and strong demand for income. Domestic credit markets continue to go from strength to strength, absorbing record levels of supply, particularly from kangaroo (non-Australian) issuers such as Alphabet. An evolving investor base, with increased global and retail participation, is underpinning strong and ongoing demand. The changing dynamics of the domestic market should provide a solid springboard for the strategy to continue to perform going forward,” he notes.

Western Asset is a global fixed income specialist and wholly owned subsidiary of Franklin Templeton, with AUD$322.9 billion in assets under management as at June 30, 2026.

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BCG’s M&A Report 2026, identifies four key forces shaping the market in Australia: a changing regulatory environment, the growing influence of superannuation funds, macroeconomic uncertainty and a continuing disconnect between buyer and seller expectations.

According to the report, Australia’s new mandatory merger control regime and heightened foreign investment scrutiny are extending approval timelines and increasing execution risks for acquirers. At the same time, higher interest rates and lower growth expectations are widening valuation gaps, making it harder for buyers and sellers to agree on price and contributing to subdued deal volumes.

“The Australian M&A market remains challenging, but there are still attractive opportunities for organisations with a clear strategic rationale and the patience to execute effectively,” said Matthew Abel, Managing Director and Senior Partner at BCG.

“Success increasingly depends on preparation, valuation discipline and the ability to navigate a more demanding regulatory environment. The best dealmakers are focusing on quality opportunities rather than pursuing transactions for growth’s sake.”

The report also highlights the growing influence of Australia’s superannuation sector. Superannuation funds now hold more than A$4 trillion in assets and are estimated to own around 36 per cent of the ASX’s market capitalisation, increasing their importance in the outcome of major transactions.

“Superannuation funds are becoming increasingly important stakeholders in Australia’s dealmaking landscape,” said Gates Moss, Partner and Associate Director at BCG. “Acquirers need to be prepared to explain not only the financial merits of a transaction, but also its strategic value and broader impact on the Australian capital market.”

Despite the headwinds, BCG expects opportunities to emerge in sectors benefiting from long-term structural demand. Australia continues to attract strong investor interest in LNG, energy transition assets and critical minerals such as lithium, copper and rare earths, reflecting the nation’s role in global energy security and the resources transition.

The report also notes that upcoming changes to capital gains tax settings could encourage more privately owned businesses to come to market before July 2027, potentially creating a larger pool of opportunities for strategic and private equity buyers.

“While conditions remain difficult, businesses that take a long-term view, prepare early for regulatory scrutiny and remain disciplined about where they deploy capital will be best positioned to create value as the market evolves,” said Gates Moss.

Read the report.

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Danny King

Key Points

• Australia climbs to 6th place improving its position as one of the world’s strongest retirement systems
• Despite this, one third of Australians expect to receive an inheritance that will substantially fund their retirement
• Australians estimate they need a balance of $1.1 million to retire securely, but 53% don’t believe they will reach that target
• Australians are under-advised compared to their global counterparts with 54% of Australians not receiving professional advice compared to 38% globally

Australia remains one of the best places in the world to retire, climbing one place to rank sixth globally in the latest Natixis Investment Managers Global Retirement Index (GRI). Yet, Australians remain uncertain about their financial future, with a growing reliance on inheritance expectations and the significant advice gap, raising concerns about retirement preparedness.

In this year’s index, Australia maintains its top ten position for global retirement security. The top five countries are Norway, Ireland, Netherlands, Switzerland, Denmark. Following Australia in sixth, Germany, Luxembourg, Iceland and new entrant Czechia round out the top ten.

Created in collaboration with CoreData Research, the GRI assesses retirement security across 44 countries using 18 indicators spanning finances in retirement, material wellbeing, health and quality of life.

On average, Australians think they need a balance of just over AUD $1.1 million to retire securely, much lower than the global average of AUD $1.46 million. But more than half (53%) of those surveyed predict that they won’t be able to save this much compared to only 39% globally. Perhaps this is why one in three Australians expect to substantially fund their retirement with an inheritance, as fear remains that they won’t have enough money to enjoy their retirement (49%).

Contributing to this, Australians are under-advised compared to their global counterparts, as more than half (54%) surveyed said they don’t seek professional advice compared to 38% globally.

Danny King, Country Head of Australia and New Zealand at Natixis Investment Managers said: “Australia’s retirement system remains one of the strongest globally and our rise to sixth place in this year’s Global Retirement Index reflects the success of Australia’s compulsory super system and the expertise of the investment professionals trusted with prudently growing these funds over the long term. However, the research highlights an emerging disconnect between the strength of the system and how people feel about their own retirement readiness. The introduction of personalised professional advice via superannuation funds will play a critical role in helping people retire confidently, and make informed decisions throughout their retirement journey. Investing for and during retirement is a long-term game and accessible, professional advice is needed to support Australians in what is one of the most important investments in their lives.”

Retirement systems built on 20th Century assumptions

People are working differently today, living longer and shouldering a greater share of the responsibility for funding retirement. Ageing populations, longer life expectancies, and private pension liabilities, alongside record public debt, is putting pressure on public pensions, and inflation is leaving individuals with less money to save.

Nearly eight in ten Australians said it is increasingly their responsibility to fund retirement on their own (77%) and believe government retirement programs do not adequately account for people living longer (76%).

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Fraser Allan

Australian investors and traders remain nervous about markets but are continuing to invest and trade through uncertainty, maintaining exposure despite rising caution and concerns over mounting macro headwinds, according to new research from global online multi asset provider, CMC.

CMC surveyed more than 8,500 Australian investors and traders, finding that ongoing global uncertainty had led more than half (56.1%) of all respondents to become more cautious. However, almost nine in ten (87.1%) said they planned to invest the same, or even more, over the next six months.

Among those who were more cautious, one third (31.8%) of the respondents said they plan to invest or trade more in the next six months, while only 12.8% plan to invest or trade less.

Commenting on the findings, Fraser Allan, Head of Premium Client Management at CMC, said nervousness was reflected in mindset not allocations, with investors and traders choosing to stay the course despite ongoing uncertainty and volatility.

“This is a story of calibration, not capitulation. Investors and trades are acknowledging the risks and adopting a more considered mindset, but uncertainty has not driven them away from markets,” Mr Allan said. “Rather than stepping back, they appear to be reassessing how and where they participate, a measured response that reflects neither complacency nor retreat.

“That’s a meaningful shift from what could be expected, given that uncertainty has in the past led some retail investors and traders to flee to cash. This time, some investors and traders are staying in the market and adjusting how they participate.”

Cash, not conviction, is the handbrake

Asked what is most preventing them from investing more, respondents pointed at their own bank balance rather than geopolitics or volatility.

A lack of available cash was the single biggest barrier to investing (53.3%), outweighing volatility (18.5%), knowledge gaps (11.7%), geopolitical tensions (10.2%), and fear of losses (6.3%) combined.

“The headlines are geopolitics and volatility, and those things are real,” said Mr Allan. “But when we ask respondents what’s actually holding them back, one in two say it’s simply that they don’t have the spare cash. Fear of losing money comes in at just six per cent.”

AI has moved into the mainstream of retail investing

Nearly half of investors and traders surveyed (48.6%) now use AI tools to support investment decisions, with 33.1% using it occasionally and 15.6% regularly.

From the survey results, investors and traders are using it across the investment spectrum, including researching companies (21.0%), learning/education (19.7%), market analysis (17.7%), and generating trade ideas (11.4%). However, trust has not kept pace. Fewer than a third (29.4%) say they trust AI-generated market insights.

The survey shows investors and traders who have adopted AI look markedly different from those who selected “not using”. Regular AI users are:

• Nearly twice as likely to be planning to trade more over the next six months (46.4% vs 25.0% of non-users)
• More bullish on markets (42.0% bullish or somewhat bullish, vs 26.7%)
• More confident in their own decisions (10.0% “very confident”, vs 6.8%)
• More globally exposed (29.2% increased US equity exposure, vs 15.1%)

“AI has arrived in retail investing faster than almost anyone expected,” said Mr Allan. “Those using AI are more active and more confident as they have the information that matters, cutting through the noise and abundance of information.

“It is providing a new resource to help support investors and traders for decision-making. However, a trust gap remains, with less than a third of respondents saying they trust what comes back. It seems investors and traders are still rightly questioning the outputs that AI delivers.”

The rise and rise of ETFs

ETFs were the most common way investors and traders who participated in the survey said they had added exposure in response to recent volatility. Nearly half (47.6%) increased their investment or exposure to index funds and ETFs, ahead of Australian equities (37.5%), US equities (21.0%), commodities (7.8%), and crypto (4.7%).

Looking forward, ETFs again led expectations for the best-performing asset class over the next six months (29.0%), ahead of US equities (21.3%), global equities (16.0%), Australian equities (15.7%), commodities (13.8%), crypto (3.3%), and FX (1.0%).

The findings echo CMC Invest’s 2026 H1 Inside Invest Report which identified the emergence of a “Big Four” ETFs (IVV, VGS, VAS and NDQ) accounting for approximately 75% of top-10 orders, with investors using ETFs as a route to US and global exposure.

“The index has become the default,” said Mr Allan. “When investors and traders are uncertain, they’re not going to cash and they’re not stock-picking their way out of it. They’re buying the market and getting diversified exposure to local and international markets through a handful of very large, very liquid ETFs.”

A market waiting for a catalyst

The survey reveals the largest group of respondents have no firm view on where markets will go next.

Uncertainty remains the key theme among investors and traders with four in ten (40.4%) neutral on the six-month outlook for markets, outnumbering both bulls (34.1%) and bears (25.5%).

Sentiment translates almost directly into intent. Among investors and traders who are bullish or somewhat bullish, 47.6% plan to invest or trade more, compared with 21.6% of those who are bearish or somewhat bearish.

“The biggest block in the market right now isn’t the bulls or the bears, it’s the undecided,” said Mr Allan. “That tells you this is a market waiting for a catalyst rather than one positioning for a direction. When that catalyst comes, whether it’s rates, earnings, or geopolitics, there’s a very large group of investors ready to move quickly.”

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Michael Lovett

The Bell Australian Small Companies Fund – Class A (APIR PIM8252AU) has been awarded a Recommended rating by Lonsec Research — the fund’s second Recommended endorsement since the Fund launched mid year.

Lonsec’s review points to a disciplined, repeatable investment process and a portfolio construction and risk management framework built around ensuring active risk is predominantly stock-specific.

“Disciplined and repeatable investment process, with a clear quality and valuation framework suited to the small-cap universe.” (Lonsec Research)

Michael Lovett, Chief Executive Officer of Bell Asset Management, says the latest rating reinforces the credibility of the process .

“Two research houses now recognise the depth of work behind this strategy. That kind of external validation matters, particularly for investors running their own due diligence.”

Portfolio Manager Tim Johnston says the rating reflects the team’s approach to portfolio construction.

“Position sizing reflects quality, valuation, conviction and portfolio fit — and the aim throughout is to make sure what drives performance is genuine stock selection, not unintended exposure to macro or sector moves. It’s good to see that discipline recognised.”

Market context

The rating comes as reporting season data reinforces the team’s investment thesis. Tim Johnston, Portfolio Manager, says small-cap earnings appear close to a cyclical low, with investment-led parts of the economy — resources, infrastructure and electrification — continuing to outperform consumer-facing sectors.

“Approximately 80% of companies met or exceeded expectations this reporting season, and takeover activity across the sector confirms our view that valuations remain modest,” Johnston says. “Investors are starting to recognise the opportunity, and the valuations on offer.”

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Tim Steele

Leading cloud-based accounting and SMSF administration software provider Class has released its 2026 Annual Benchmark Report, revealing new insights into rollover activity and indicating recent government reforms may have more impact than initially anticipated.

As at 30 June 2026, the number of SMSFs reached a record 680,301 funds and more than $1.107 trillion in assets. During FY26, 52,020 new SMSFs were established, the highest number added within a financial year on record. This growth was achieved against a backdrop of significant regulatory change including the commencement of Division 296, Payday Super and changes to Limited Recourse Borrowing Arrangements (LRBAs).^[1]

This year, new findings reveal where SMSF rollovers are coming from and going to, highlighting the significant role member choice continues to play in shaping rollover activity across the sector. Between FY23 and FY26, $14.4 billion was rolled into Class SMSFs, around 2.5 times the $5.7 billion rolled out. Industry funds were the largest source of rollover inflows, accounting for 57.2%, while retail funds received 66.7% of rollover outflows.^[2]

Class CEO Tim Steele said flexibility, choice and control are enduring features of SMSFs, with the data clearly demonstrating their important role within a competitive and diverse superannuation system. With SMSFs remaining in place for an average of 18 years in FY25, the data suggests many members continue to value the benefits the structure provides throughout their retirement journey.

“The findings show that different superannuation structures may play a role for members at different stages of life. Access to advice from financial professionals is critical to help clients make those decisions with confidence.”

1. Younger Australians with strong financial foundations drive growth

Gen X (aged 46-60) and Millennials (aged 31-45) continue to drive SMSF establishment activity, accounting for 89.1% of newly established funds.

The average and median age for all SMSF members was 62 in FY25. For newly established Class funds, the average member age was 47 in FY25 and FY26, while the average fund balances remained strong at $467,000 in FY25.^[3]

2. Member choice shaping rollovers in and out of SMSF

Industry funds were the largest source of rollovers into SMSFs, contributing 57.2% of total value over the four-year period from FY23-FY26.

The rollover data suggests many members establish SMSFs with significant existing superannuation savings. Between FY23 and FY26, members consolidated an average of $267,000 through 1.5 rollovers, while newly established Class funds recorded an average balance of $467,000 in FY25.^[4]

Meanwhile retail funds received 66.7% of rollover out value from SMSFs, with retail platforms often the preferred destination for members exiting the SMSF sector. This reinforces the ongoing importance of member choice and access to professional advice, to ensure individuals can choose the solution best aligned to their goals at each life stage.

Analysis of the 4,688 Class SMSFs wound up in FY25 found that more than half (51%) did not rollover to another superannuation fund, suggesting closures may be linked to members exiting the superannuation system through retirement, death benefit payments or other benefit withdrawals.

Meanwhile, among the wound up SMSFs that did transfer assets to another superannuation fund, retail platforms were the preferred destination, receiving 41.6% of wind-up rollovers.

3. New SMSFs drove the establishment of almost one in three residential LRBAs

Residential property continues to dominate SMSF borrowing activity, with new research revealing the extent of LRBA usage across the sector well before the Government announced restrictions to residential LRBAs in June this year.

In FY25, residential property represented 92.7% of Class SMSF LRBA holdings. The research found 3,672 new residential property LRBAs were established in FY25, up 46.8% from FY23, with almost one in three in newly established SMSFs and two-thirds from existing SMSFs.

Based on Class data, an estimated 11,500 new residential property LRBAs were established across the SMSF sector in FY25, compared with the ATO’s updated estimate of around 8,700 in FY24. These findings indicate that residential LRBA activity was higher than earlier estimates, meaning the legislated changes could have wider implications for industry providers supporting residential SMSF borrowers.^[5]

4. Division 296’s reach extends beyond current members

The Benchmark Report found 72.8% of Class SMSFs have positive net unrealised Capital Gains Tax (CGT) positions as of 30 June 2026. Among SMSFs with at least one member balance above $3 million, the proportion with a positive net unrealised CGT position rises to 95.4%.^[6]

This is particularly relevant under the Division 296 transitional CGT adjustment, which places greater focus on calculating unrealised capital gains and obtaining valuations for unlisted investments, including property.

The findings also suggest much of the impact is yet to be felt, with 8.8% of Class SMSFs with a member balance above the $3m threshold and a further 9.4% with member balances between $2m and $3m, creating a significant emerging cohort that may likely be affected in the future.

These changes reinforce the important role financial professionals play in helping clients navigate increasingly complex requirements including asset valuations, tracking dual cost bases, record-keeping and liquidity management.

Read the full report.

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Notes:
[1] ATO SMSF Quarterly Statistical Report
[2] Rollover-in and rollover-out excludes transfers between SMSFs
[3] ATO SMSF: A statistical overview 2023-24 (updated on 10th December 2025)
[4] Member-based averages combine multiple rollover transactions made by the same member. Transaction-based averages measure each rollover separately.
[5] Class’s FY25 estimate extrapolates identified holdings using its SMSF market share. ATO figures relate to FY24 LRBAs. Data limitation: LRBA figures reflect data as recorded and have not been corrected or normalised. They may not represent each fund’s underlying legal or economic position.
[6] ATO Self-managed super funds: Annual statistics overview 2016-17 infographics

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Balmoral Investors is pleased to announce that its ‘Balmoral Investors Emerging Companies Fund’ has earned an initial ‘Recommended’^[1] rating from Lonsec.

The Fund is an actively managed Australian micro-cap equity strategy benchmarked against the S&P/ASX Small Ordinaries Accumulation Index.

According to the Lonsec report, the recommended rating reflects its conviction in Balmoral’s investment process which it considers as “logical and well applied, with a clear and repeatable investment philosophy.”

Senior portfolio managers Tim Canham and Wik Farwerck have worked together managing Australian small and micro-cap portfolios for 15 years. Prior to establishing Balmoral, Canham and Farwerck managed more than $1 billion at Colonial First State Global Asset Management and First Sentier Investors. Lonsec noted that the pair outperformed the relevant benchmark by 8.3% p.a. over their 15 years working together.

The Lonsec report also highlighted Balmoral’s partnership with Perennial Partners, which owns 50% of the business, noting that Perennial provides the boutique with distribution capabilities and operational infrastructure to support its growth. Canham and Farwerck retain the remaining 50% of Balmoral.

————

Notes:
[1] ‘Recommended’ rating indicates that Lonsec has strong conviction the product can meet its investment objectives.

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Maria Lykouras

Stockbroking and investment advice firms need to do more to attract and retain a diverse pool of talent, with a new insights report highlighting the opportunities this could bring, and the risks of failing to act.

The insights report conducted by the Stockbrokers and Investment Advisers Association (SIAA), Invested in what comes next, finds that while stockbrokers and investment advisers have rebuilt their models, shifted to transparent fees and met rigorous education standards, public perceptions remain rooted in outdated stereotypes.

The report argues these perceptions fail to reflect the reality of a modern, market-facing profession, where investment professionals help clients interpret live market movements, respond to company announcements and make informed decisions about their capital, businesses and long-term financial position.

“Stockbroking and investment advice now rivals other established professions, but it is not seen as relevant or trusted as it should be,” SIAA chief executive officer Maria Lykouras says.

“The reality is stockbroking and investment advice is a dynamic, market-facing profession that offers intellectual challenge and opportunities to have a real-world impact. In an era where AI is reshaping every knowledge industry, the value of human judgement, applied in real time and in complex conditions, has never been more consequential.

“But the perception gap is leading a generation of incoming talent – and potential clients – to dismiss the profession before they have properly engaged with it,” Ms Lykouras says.

A profession on the frontline of markets

The report highlights the distinctive role stockbrokers and investment advisers play in helping Australians navigate live market conditions, from rate decisions to capital raisings, listings and periods of volatility.“The work is live, the decisions carry weight, and the value of trusted human judgement is clear,” Ms Lykouras says.

“On any given day, investment professionals are tracking central bank decisions, interpreting earnings results as they land, and speaking with clients about what the current environment means for their capital, their business or their long-term position.

“For people looking for a career that combines markets, client relationships, intellectual challenge and real-world impact, stockbroking and investment advice has a much stronger story to tell,” Ms Lykouras says.

Barriers to attracting talent

The report, which draws on insights from across SIAA’s membership, independent research and industry consultation, identifies several structural barriers to building a broader talent pipeline. These include:

• Entry pathways that rely on networks, rather than access
• Career progression that assumes working patterns that are difficult to sustain
• Client allocation and advancement that often follows informal channels

The barriers often disproportionately disadvantage women in the sector. Only one in four investment professionals are women, and that figure drops sharply at senior level.

“A new generation of talent is actively seeking careers that offer pace, purpose and real-world impact – and stockbroking and investment advice offers all of this.“We know women find the work rewarding. They value the autonomy, intellectual challenge, depth of client relationships and long-term commercial opportunities. But many firms are failing to adapt their recruitment and retention strategies to capture this incoming talent,” Ms Lykouras says.

A workforce challenge with commercial consequences

This lack of diversity has significant consequences for attracting and retaining clients even as demand for investment advice continues to grow.

The report also finds SIAA members have a structural advantage in responding to these shifts, operating across the full investor spectrum from self-directed and online participation through to full-service advice. As clients move between these models over time, firms trusted across each stage will be best placed to grow with them.

Around $5 trillion is expected to pass from older to younger generations in Australia within the coming decade, and women are expected to receive around 65% of this wealth.

“Investors need trusted human guidance more than ever, particularly as wealth changes hands and financial decisions become more complex,” Ms Lykouras says.

“The next generation of clients is not looking for inherited relationships, but rather guidance that aligns with their own values and expectations. Women in particular are looking for advisers who have market expertise, but who also understand their situation, priorities and stage of life,” Ms Lykouras says.

“Firms that make adjustments to attract and access a diverse talent pool that others cannot will gain a competitive advantage by being able to serve a different and larger client base.

”The report also highlights a significant advice gap, with only 20–30% of the millions of Australians actively participating in markets doing so with professional guidance, despite high satisfaction among those who work with an investment professional.

The report suggests firms could:

• Expand graduate recruitment beyond traditional networks
• Build mentoring and sponsorship structures for early-career talent
• Review client allocation and advancement pathways
• Design performance frameworks that recognise long-term client relationships, not just short-term revenue
• Tell the story of the profession clearly, consistently and with confidence

Many firms have started to address these challenges, but Ms Lykouras says other firms need to follow that lead to make the progress consistent and scalable across the sector.

“The window to shape the profession’s reputation is open now. Stockbroking and investment advice firms have a generational opportunity to change perceptions and bring new talent and new clients into the sector,” she concludes.

Read the report.

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