Industry Analysis & Industry Trends
The Australian Funds Management Services industry is thriving. With experience 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 2014-15. Furthermore, fund managers have been able to tap into a larger asset base. Australia's growing number of high net worth individuals and a stronger culture of private and national saving have also fuelled industry growth, as the need for investment services has grown. Industry revenue is forecast to increase by a compound annual 3.1% over the five years through 2014-15.
The performance of the sharemarket has a strong influence on industry revenue... purchase to read more
Industry Report - Industry Investment Chapter
The Funds Management Services industry is characterised by low capital intensity. This means that for every dollar spent on wages, only $0.05 is invested in capital. Labour expenses include the salaries and benefits paid to professionals and administrative staff. The average industry wage is high, reflecting the skilled nature of work. Heavy regulation also contributes to the industry's labour intensity. Capital intensity is expected to decrease over the next five years, despite increasing investment in telecommunications technology. This is mainly attributed to the fact that labour costs typically move in line with revenue growth through performance fees, while capital costs remain relatively fixed... purchase to read more