Well managed: Growing funds under management and outsourcing aid performance

The Funds Management Services industry has grown over the past five years. The portion of funds sourced from overseas markets has significantly increased over the period. As a result, fund managers have been able to access a larger asset base, as funds under management (FUM) have increased over the period. Industry revenue is expected to grow at an annualised 2.6% over the five years through 2018-19, to $10.9 billion. This includes an anticipated modest growth of 0.5% in 2018-19. Growth in FUM is anticipated to slow over the current year due to global economy concerns, such as slowing growth in the Chinese economy, looming Brexit deadline and US-China trade tensions. The correction in the All Ordinaries Index during late 2018 has also contributed to the slower growth...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 14-19
2.6%
Forecast Growth 19-24
Profit
Employment
7,389
Businesses
335

Industry Threats & Opportunities

  • Funds under management have increased over the past five years, supporting the industry
  • Industry enterprise numbers have declined over the past five years due to consolidation trends
  • More investors are likely to opt for passive investment strategies over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Funds Management Services industry has moderate industry concentration. The four largest players in the industry are expected to account for over 60% of total industry revenue in 2018-19. Increased merger and acquisition activity in the industry is expected to further increase concentration over the next five years.Several factors can explain increasing industry consolidation. Economies of scale are easily achievable with a greater value 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. Acc...purchase to read more.

    Additional Insights for the Funds Management Services Industry

    IBISWorld has determined the most important Key Success Factors for the Funds Management Services are:

  • Having a high prior success rate (including completed prior contracts)
  • Having an extensive distribution/collection network
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as All Ordinaries index and Cash rate in the Funds Management Services industry impact industry performance..

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    What's in this report

    What is the Funds Management Services Industry?

    Industry players mainly provide funds management services, including insurance funds management, public offer unit trusts, government funds and overseas funds. Industry participants generate income by providing portfolio investment services and investment consultant services on a commission and fee basis. The industry excludes superannuation funds management.

    Industry Products
  • Deposits
  • Debt securities
  • Australian equities
  • Land and buildings
  • Overseas assets
  • Other assets
  • Industry Activities
  • Portfolio investment management
  • Financial asset investment consultancy
  • 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
  • Cash rate
  • Demand from life insurance
  • High income earners

  • Current Performance
  • Revenue and funds under management
  • Industry structure and participation
  • Future of Financial Advice reforms
  • Economies of scale
  • Chart: Revenue Growth

  • Industry Outlook
  • New assets and markets
  • Industry structure
  • Robo-advisor trend
  • Table: Funds Management Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Funds Management Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Financial Planning and Investment Advice
  • Consumers

  • Key Selling Industries
  • General Insurance
  • Life Insurance
  • Superannuation Funds

  • Products & Services
  • Overseas assets
  • Australian equities
  • Land and buildings
  • Deposits
  • Debt securities
  • Other assets
  • Chart: Funds Management Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesale financial trusts
  • Government sources
  • Life insurance offices
  • Public unit trusts
  • Overseas investors
  • General insurance
  • Cash management trusts
  • Chart: Major Market Segmentation for the Funds Management Services 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 Funds Management Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Funds Management Services Industry

  • Industry Globalization
    Macquarie Group Limited, Commonwealth Bank of Australia,
  • Table: Macquarie Group Limited - financial performance
  • Table: Commonwealth Bank of Australia - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Funds Management Services 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 Funds Management Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Total Assets (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Assets Under Management (Aum)
  • The total market value of investments managed by a fund manager.
  • Funds Under Management (Fum)
  • The value of a pool of assets collectively managed by a fund manager.
  • Mandate Solution
  • A product specifically designed to the requirements of the client taking into consideration the required rate of return and risk.
  • Master Trust Or Wrap
  • An investment structure used to package investments into a single portfolio for easier access and management.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Funds Management Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Funds Management Services:
    • 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 Funds Management Services 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 Funds Management Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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