Australian Asset Managers: Fundamental Challenges Outweigh Macro Improvements

Average earnings growth for the seven asset managers we cover—Challenger, GQG, Insignia, Magellan, Perpetual, Pinnacle, and Platinum—are likely to improve through to fiscal 2025, driven by better fund flows compared with fiscal 2022-23. However, we expect earnings growth to moderate starting fiscal 2026. More than half of these firms—Insignia, Perpetual, Magellan, and Platinum—will likely continue experiencing net outflows over the medium term.