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 - Industry Key Buyers Chapter
The Funds Management Services industry displays a medium level of industry concentration. The four major players in the industry are expected to account for an estimated 65.6% of total industry revenue in 2015-16. Increased merger and acquisition activity in the industry is expected to further increase the concentration over the next five years.
Several factors can explain increasing industry consolidation. Economies of scale are easily achievable with a greater amount of funds under management. Administrative and technological costs can be spread among a larger base of funds, reducing the overall fees charged and appealing to new clients. Additionally, the major banks are anticipated to continue penetrating the funds management market as they seek new growth opportunities... purchase to read more