Industry Analysis & Industry Trends
The Australian Funds Management Services industry is thriving. Domestic managers have attracted funds from all over the world due to their experience and a strong track record. Therefore, 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. Meanwhile, Australia's growing number of high net worth individuals and a strong culture of private and national saving have increased the need for investment services, fuelling industry growth. Industry revenue is forecast to increase by an annualised 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 Key Buyers Chapter
The Funds Management Services industry has a medium level of industry concentration. The four major players in the industry are estimated to account for 58.9% of total industry revenue in 2014-15. Increased merger and acquisition activity within the industry is expected to further increase the concentration over the next five years.
Increasing industry consolidation can be explained by several factors. Economies of scale are easily achievable with large amounts of funds under management. Administrative and technological costs can be spread among a larger base of funds, reducing the overall fee charged and attracting new clients. Additionally, the big four banks are anticipated to continue penetrating the funds management market as they seek new growth opportunities... purchase to read more