Market Report: Investment Management and Project Delivery – March 2025

This report provides a high-level snapshot of recent market activity across project delivery in the Investment Management space in Australia.

Current Project Trends

• As investment managers and super funds deploy more assets offshore, some are building new capabilities and operating models in key hubs like New York and London.

• Several front office system implementations are nearing completion, while a few vendor selection processes are currently underway across both listed investments and private markets.

• Many firms are reassessing their approach to investment data management. With a diverse array of solutions from vendors and service providers, the landscape presents a range of considerations.

• As previously discussed, the State Street Alpha/CRD solution continues to drive significant activity and operating model changes for investment managers.

Employment Market Trends

• From mid-2023 to late 2024, we saw one of the toughest employment markets in recent history. Many strong operators were out of work for extended periods. Since January, there has been a clear improvement, though it’s important to acknowledge this is coming from a very low base.

• While it remains an employer’s market, the pendulum has started shifting slightly back towards candidates.

• That said, conditions remain tough for senior candidates, who often find themselves competing against multiple high-calibre professionals.

• Consulting and project day rates have plateaued and in some instances, decreased over the past 12 months. In recent months, they have remained more stable.

M&A Activity / Strategic Partnerships (Recent Announcements or Discussions)

• Insignia Financial is outsourcing the administration services of its Master Trust business to SS&C Technologies.

• Australian Ethical attempted to acquire Future Group.

• Brookfield is considering selling La Trobe for $2.5bn–$3bn.

• IFM has finalised its purchase of ISPT.

• CareSuper is set to merge with Meat Industry Employees Superannuation Fund.

Watch This Space – Key Questions Moving Forward

• We’re seeing signs of recovery. With large transformation programs kicking off, we may see the market shift in 2025, moving away from an employer’s market over the course of the year.

• While this is promising, expectations should remain tempered given macroeconomic conditions and the uncertainty surrounding global trade tariffs, which continue to create volatility for fund managers.

• Large-scale AI programs in investments remain rare outside of data automation, but we wouldn’t be surprised to see more initiatives emerge soon.

If you'd like to discuss any of the above or have a general chat about the market, call Steve Ash on 0439 441 758.