Sentimental investment: As business sentiment strengthens, industry funds grow
IBISWorld’s Funds Management Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.
Industry Statistics & Market Size
Annual Growth 09-14
Annual Growth 14-19
Industry Analysis & Industry Trends
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. 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... purchase to read more
Industry Report - Industry Investment Chapter
The industry has low capital intensity with capital-to-labour ratio of 4.8%. This means that for every dollar spent on technology, an extra $21 needs to be spent on labour. 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. High regulations also contribute to the labour intensity of the industry. Capital intensity is expected to decrease in the five years through 2018-19, even though more investments will be made into telecommunications technology. This is mainly attributed to the fact that labour costs trail with revenue growth through performance fees, while capital costs remain relatively fixed... purchase to read more
What is the Funds Management Services Industry?
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.
DepositsDebt securitiesAustralian equitiesLand and buildingsOverseas assetsOther assets
Portfolio investment management Financial asset investment consultancy