FUMs up: Rising funds under management have driven industry revenue growth

Strong equity markets and growth in contributions have boosted revenue for the Superannuation Funds Management Services industry over the past five years. These trends have ensured a steady flow of retirement savings into the market, to the benefit of industry investment managers. Industry revenue is generated through management fees that operators levy on their funds under management (FUM). The value of FUM fluctuates according to the flow of funds and the performance of investment markets. Industry revenue is expected to increase at an annualised 5.5% over the five years through 2018-19, to reach $10.9 billion. This includes anticipated growth of 3.1% in the current year...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 14-19
5.5%
Forecast Growth 19-24
Profit
Employment
16,897
Businesses
3,559
Market Share of Companies

Industry Threats & Opportunities

  • Revenue has increased due to strong growth in equity markets and contributions
  • The industry’s structure has changed over the past five years due to regulation changes
  • Industry profitability is likely to grow as fund managers increase the scale of their operations
  • Industry Report - Industry Key Buyers Chapter

    The Superannuation Funds Management Services industry is characterised by a low level of market share concentration, with the four largest operators accounting for significantly less than 40% of industry funds under management. The majority of industry operators are small fund operators, which hire less than 20 employees. The remainder comprises the wealth management divisions of a small number of large, diversified financial institutions. The big four banks are increasingly trying to penetrate the industry in a bid to diversify their business...purchase to read more.

    Additional Insights for the Superannuation Funds Management Services Industry

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

  • Successful investment record
  • Having an extensive distribution network
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Demand from superannuation funds and All Ordinaries index in the Superannuation Funds Management Services industry impact industry performance..

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    What's in this report

    What is the Superannuation Funds Management Services Industry?

    Industry participants provide investment management, administration and advisory services to superannuation funds. Service fees are earned as a percentage of the funds under management, administration or advice. Investment managers also receive commissions based on performance, with a portion determined by absolute returns and the rest by industry benchmarks. Therefore, investment managers can earn some performance commissions despite delivering losses.

    Industry Products
  • Cash and deposits
  • Domestic debt securities
  • Australian equities and trusts
  • Property
  • Overseas assets
  • Other assets
  • Industry Activities
  • Portfolio management services on a commission or fee basis
  • Financial asset investment consultant services
  • Administration services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from superannuation funds
  • All Ordinaries index
  • MSCI World Index
  • Cash rate

  • Current Performance
  • Market conditions
  • Recovering markets
  • Stronger Super reforms
  • External threats
  • Chart: Revenue Growth

  • Industry Outlook
  • Slowing contributions
  • Superannuation guarantee increased
  • Increased competition
  • Table: Superannuation Funds Management Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Superannuation Funds
  • Consumers

  • Key Selling Industries
  • Custody, Trustee and Stock Exchange Services
  • Financial Planning and Investment Advice
  • Superannuation Funds

  • Products & Services
  • Australian equities and trusts
  • Overseas assets
  • Domestic debt securities
  • Cash and deposits
  • Property
  • Other assets
  • Chart: Superannuation Funds Management Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Small funds
  • Retail funds
  • Industry funds
  • Public sector funds
  • Corporate funds
  • Life office statutory funds
  • Chart: Major Market Segmentation for the Superannuation 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 Superannuation Funds Management Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Superannuation Funds Management Services Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Superannuation 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 Superannuation 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Funds Under Management (Fum)
  • The value of client assets under investment management.
  • Management Expense Ratio
  • The expenses incurred by account holders as a percentage of FUM.
  • Self-Managed Superannuation Funds
  • ATO-regulated superannuation entities that have less than five members, all of whom are trustees or directors of the corporate trustee.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Superannuation Funds Management Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Superannuation 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 Superannuation 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 Superannuation 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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