Industry Analysis & Industry Trends
The Australian Funds Management Services industry is thriving. Domestic managers have attracted funds from domestic and international investors due to their experience and a strong track record. The portion of funds sourced from overseas markets has grown significantly over the past five years. Furthermore, fund managers have been able to access a larger asset base as funds under management (FUM) continue to grow. Australia's growing number of high-net-worth individuals has increased the need for investment services, fuelling revenue growth. Industry revenue is forecast to increase at an annualised 5.2% over the five years through 2015-16, with current year growth of 6.0%, to reach $7.8 billion.
The Australian sharemarket's performance has strongly influenced industry revenue... purchase to read more
Industry Report - Starting a New Business Chapter
The Funds Management Services industry has medium barriers to entry. Raising funds without prior experience or an established network can be difficult. New entrants to the industry also face certain difficulties in attracting investors. Building a reputation and an investment performance history comparable with those of existing fund managers can take time. Most boutique investment managers have built up a wealth of experience and contacts while working for large financial institutions.
Establishing a new business can incur numerous costs including brand building, distribution and constructing a team of skilled staff. The cost of operating a fund gradually decreases as the value of FUM grows, due to the greater realisation of economies of scale... purchase to read more