Overview

Well managed: A strong sharemarket has attracted investors, aiding industry revenue

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.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Industry enterprise numbers have declined over the past five years due to consolidation trends
  • Industry consolidation is expected to continue over the next five years

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    Industry Analysis & Industry Trends

    The Australian Funds Management Services industry has been thriving. Due to their experience and strong track record, domestic managers have been attracting funds from domestic and international investors. 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) have continued to increase. Australia's growing number of high-net-worth individuals has increased the need for investment services, fuelling industry revenue growth. Industry revenue is forecast to grow at an annualised 5.4% over the five years through 2016-17, including by 3.0% in the current year, to $7.7 billion...

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    Industry Report - Industry Investment Chapter

    The Funds Management Services industry is characterised by low capital intensity. For every dollar paid as wages, the industry spends an estimated $0.03 on capital investment. Labour expenses include salaries and benefits paid to professionals and administrative staff. The average industry wage is high, reflecting the skilled nature of work. Heavy regulation also contributes to the industry's labour intensity as larger fund managers generally tend to have an in-house legal team to ensure that their investment practices remain well within the confines of regulatory compliance.

    Capital investment in the industry is mainly undertaken to improve efficiency, reduce costs, increase analytical capability and improve services to clients. The..

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    Additional Insights for the Funds Management Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Funds Management Services Industry 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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    New Zealand Special Report

    Industry Products

    What is the Funds Management Services Industry?

    The industry mainly provides 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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • All Ordinaries index
  • Cash rate
  • Demand from life insurance
  • High income earners

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Funds Management Services Industry Revenue Outlook

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

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

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

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

  • Demand Determinants
    Major Markets
  • Wholesale financial trusts
  • Life insurance offices
  • Government sources
  • Public unit trusts
  • Overseas investors
  • Other 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
    Competitive Landscape
    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
    Major Companies
    Macquarie Group LimitedCommonwealth Bank of Australia
  • Table: Macquarie Group Limited - financial performance
  • Table: Commonwealth Bank of Australia - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Funds Management Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Assets (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Why buy this report?

    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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