Melbourne, Australia (PRWEB) August 02, 2013
The Australian Funds Management Services industry is thriving. With experienced individuals and a strong track record, domestic managers have attracted funds from all over the world. The portion of funds sourced from overseas markets is anticipated to grow over the five years through 2013-14. Furthermore, the fund managers have been able to tap into a larger asset base. According to IBISWorld industry analyst Andrei Ivanov, “industry growth has also been fuelled by Australia's growing number of high net worth individuals and a stronger culture of private and national saving.” The industry is expected to continue growing as global financial markets stabilise. Industry revenue is forecast to increase at a compound annual rate of 3.9% over the five years through 2013-14.
In 2007-08 and 2008-09, FUM have significantly declined. “Concerned investors redeemed their funds as stock markets around the world plunged by about 40.0% in 2008,” says Ivanov. Since management fees (the primary stream of revenue for funds managers) are calculated based on the value of FUM, industry revenue dropped in 2008-09. Although the financial markets have had many false starts, 2012-13 has been a strong year. Confidence is slowly returning to the markets and the industry is picking up pace. Overall, industry revenue is forecast to grow by 7.9% to $6.1 billion in 2013-14. The industry is heavily concentrated. The top four operators are Macquarie Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited and AMP Limited.
Over the next five years, the long-term trends underpinning growth in the industry, which include an ageing population, growing wealth and new products, will reassert themselves. Industry consolidation, increasing economies of scale and improving efficiency are expected to contribute to profitability growth. Management fees are anticipated to decline as managers attempt to win back risk averse clients. Over the five years through 2018-19, the Funds Management Services industry is expected to enjoy an inflow of new funds and positive investment returns. As a result, the industry revenue is expected to grow at annual compound rate of 4.7% over the same period to reach $7.6 billion.
For more information, visit IBISWorld’s Funds Management Services report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
The industry consists of establishments engaged in providing fund management service including insurance funds management, public offer unit trusts, government funds and overseas funds, excluding superannuation funds management. Industry participants generate income by providing portfolio investment services and investment consultant services on a commission and fee basis. Superannuation funds management is included in the Superannuation Funds Management Services industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.