Australia’s $3.5 trillion superannuation industry is undergoing a seismic shift. With rising member expectations, regulatory scrutiny and the continued diversification of asset classes, super funds are evolving their investment strategies, technology stacks and data architectures to remain competitive. Globally, asset owners are grappling with many of the same trends but Australia’s unique dynamics make its data challenges particularly pressing.
As member flexibility increases and funds align on peer-based returns, data-driven decision making has never been more critical. The ability to aggregate, analyse and activate investment and member data in real time is now a competitive advantage. However, legacy systems, fragmented architectures and reliance on third-party vendors create roadblocks to achieving this.
Macro trends driving change in superannuation and asset ownership
One of the most significant trends is the dramatic rise of alternative investments such as private equity, real estate and infrastructure. No longer niche areas, these investments are now making up nearly half of many asset owners’ portfolios. It’s a testament to the search for diversification and yield, but it also presents a unique challenge.
Unlike the readily available, standardised data of public markets, private assets require a bespoke approach. Imagine building a custom home versus buying a prebuilt one – that’s the level of tailored strategy needed.
This has led to super funds investing heavily in specialised data strategies, building internal analytics teams and adopting incredibly flexible technology. To truly manage their diverse assets effectively, they need a unified Investment Book of Record (IBOR), a real-time dashboard that paints a holistic picture of their entire portfolio.
As such, super funds are moving away from relying solely on external portfolio management platforms and are building their own internal capabilities. A one-size-fits all approach just doesn’t cut it when dealing with such complexity. Internal teams are developing unique analytics capabilities, filling the gaps left by vendor solutions to make smarter decisions about asset allocation and risk.
This shift requires a strong foundation: solid data governance, real-time IBOR frameworks and seamless integration across diverse asset classes. It’s a significant undertaking but it demonstrates a real commitment to responsiveness and better outcome delivery for members.
Environmental, social and governance (ESG) investing is also gaining increasing prominence. It’s no longer just about financial returns; it’s about investing in a sustainable future. This means they need to integrate ESG data into their decision making, reporting and member engagement, adding another crucial layer of complexity to the data puzzle.
By tracking and analysing ESG metrics, assessing the sustainability of their investments and communicating their ESG strategy to members, they’re able to align their investments with their values, all while navigating the ever-evolving data-driven landscape.
Australian market trends: Data and technology imperatives
The shift in how funds operate is being driven by a blend of rising member expectations, technological advancements and a growing awareness of our impact on the planet.
We’re living in an instant world, where people expect information at their fingertips. Gone are the days of members passively waiting for an annual statement. Now, they want to see how their super is performing, compare it to other funds and understand the risks involved – all in real time.
As such, funds are investing in platforms that deliver clear, insightful data and engaging communication to empower their members to make informed decisions.
Behind the scenes, super funds are doing a lot of work to manage all their complex investment data. It’s crucial for funds to have a robust performance book of record (PBOR), the instruction manual that helps funds understand their returns, manage risks and optimise their portfolios.
Of course, having all that data is only useful if it’s accurate and accessible. That’s where data governance comes in. Super funds are moving to cloud-based systems where everyone has access to clean, well-organised data, which empowers them to make faster, more informed decisions.
Super funds are also increasingly relying on AI assistants as a core tool. Talking to data interfaces allow users to ask simple questions and get complex answers, while AI automatically pulls insights from messy, unstructured data. As a result, investor reporting is becoming much more dynamic, with AI allowing for truly personalised insights, such as tailored reports for members, asset owners and regulators, and even hyper-personalised experiences such as automated portfolio rebalancing.
The road ahead: The next phase of AI and data innovation for supers
Looking forward, I really believe we’re on the cusp of some truly transformative changes. We’re going to see AI taking centre stage, with funds using it to get real-time insights into risk, delve deeper into alternative investments and even predict how members will engage with their super. To make sense of all those complex investments, particularly with the rise of private markets, there’s going to be a push for better standardisation of IBOR and PBOR, with everyone working together to create clearer classifications.
The Australian superannuation industry is at a critical inflection point. As funds internalise operations, expand into private markets and seek greater investment transparency, a modern data and AI-driven approach is no longer optional – it’s essential.
Kaushik GD, head of financial services, Snowflake
