The funds management industry should be booming. Compulsory superannuation contributions continue to grow each year, investment equity markets delivered double-digit returns in 2023, and markets are now forecasting cash rates have peaked and will head down in coming years, which is likely to make equity market returns more attractive.
However, what investors are seeing are fund closures, amalgamations and little in the way of new offerings. Why the decline in funds management offerings for investors?