A valuable asset: The sharemarket's strong performance has supported industry growth

Despite the lingering effects of the global financial crisis, a strong domestic sharemarket performance over the past five years has supported growth in the Financial Asset Investing industry. Because most industry funds are invested in equities, industry revenue depends on the performance of global sharemarkets. Due to a strong domestic sharemarket performance and a significant flow of funds from foreign investors for Australian investment vehicles, industry revenue is expected to grow at an annualised 4.0% over the five years through 2017-18, to reach $12.8 billion. Revenue is projected to increase by 4.2% in the current year as more funds from overseas investors boost the value of industry assets...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Revenue will increase as more funds from overseas investors boost the value of industry assets
  • The depreciation of the Australian dollar has helped the industry attract foreign funds
  • Rising household discretionary incomes are expected to contribute to industry asset growth
  • Industry Report - Industry SWOT Analysis Chapter

    The Financial Asset Investing industry is in the growth stage of its life cycle. Industry value added, which measures the industry's contribution to the economy, is forecast to rise at an annualised 5.8% over the 10 years through 2022-23. This represents an outperformance of real GDP, which is projected to grow at an annualised 2.5% over the same period. This indicates the industry's contribution to the economy is rising.Over the past five years, industry operators have benefited from strong growth in the Australian sharemarket. Industry participants are widening their product range to attract a larger pool of customers with varying risk profiles and financial goals. As ...purchase to read more.

    Additional Insights for the Financial Asset Investing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Financial Asset Investing Industry are

  • Having an effective performance monitoring system
  • Having a well-defined strategy/goal
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as All Ordinaries index and year bond rate in the Financial Asset Investing industry impact industry performance..

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    What's in this report

    What is the Financial Asset Investing Industry?

    This industry consists of trusts (except trusts of separately constituted superannuation funds) that primarily invest money on their own account in predominantly financial assets, including mortgages. The industry also includes investment-type unit trusts that hold financial assets. The funds of unlisted and listed property unit trusts are excluded from the industry.

    Industry Products
  • Cash management trusts
  • Common fund trusts
  • Friendly societies
  • Listed unit trusts
  • Unlisted unit trusts
  • Industry Activities
  • Friendly society operation
  • Unit trust operation (except trust management on a commission or fee basis)
  • Holding company operation
  • Charitable or education trust operation
  • Investment operation (own account)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • All Ordinaries index
  • year bond rate
  • MSCI World Index
  • Trade-weighted index

  • Current Performance
  • Market volatility
  • Fixed-income assets
  • Fees and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Investor confidence
  • Inflow of funds
  • Competition from superannuation funds
  • Table: Financial Asset Investing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Financial Asset Investing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance
  • Health Insurance
  • General Insurance
  • Consumers

  • Key Selling Industries
  • Custody, Trustee and Stock Exchange Services
  • Funds Management Services

  • Products & Services
  • Unlisted unit trusts
  • Listed unit trusts
  • Cash management trusts
  • Common fund trusts
  • Friendly societies
  • Chart: Financial Asset Investing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial corporations
  • Foreign investors
  • Pension funds
  • Households
  • Government and non-financial corporations
  • Chart: Major Market Segmentation for the Financial Asset Investing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Financial Asset Investing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Financial Asset Investing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Financial Asset Investing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Financial Asset Investing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total Assets (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • An investment model where a fixed number of units are issued and no additional units are issued for new investors.
  • Investment Vehicle
  • A financial product such as stocks, bonds, or futures that an investor can put funds into with the goal of generating a return.
  • Management Expense Ratio
  • A fund's fees and expenses expressed as a percentage of assets.
  • Msci World Index
  • A benchmark index of global equities performance.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Financial Asset Investing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Financial Asset Investing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Financial Asset Investing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Financial Asset Investing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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