Overview

Purse strings: The industry is facing competition from self-managed superannuation funds

IBISWorld’s Superannuation Funds Management Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Revenue has increased due to recovering equity markets and strong growth in 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

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    Industry Analysis & Industry Trends

    Recovering equity markets and strong growth in contributions have boosted revenue for the Superannuation Funds Management Services industry over the past five years. This has 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 rise by an annualised 11.6% over the five years through 2016-17. Industry revenue growth is expected to slow down in the current year, but remain strong at 5.1%, to reach $11.1 billion...

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    Industry Report - Industry Locations Chapter

    Superannuation fund managers tend to establish operations primarily in Australia’s financial hubs, Sydney and Melbourne. This provides managers with access to highly skilled labour and telecommunications infrastructure. As a result, the distribution of establishments is greatly skewed towards New South Wales and Victoria, with the two states accounting for an estimated 63.0% of industry establishments. Industry players typically operate centralised offices, with little need to locate establishments near to markets. This supports the concentration of establishments in large central business districts.

    The industry is not bound by geographical boundaries and it is quite often for a fund manager in one state to secure a mandate from a superannuation fund in another. Thi..

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    Additional Insights for the Superannuation Funds Management Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Superannuation Funds Management Services Industry 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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    Industry Products

    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

    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
  • Demand from superannuation funds
  • All Ordinaries index
  • MSCI World Index
  • Cash rate

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • 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

  • Products & Markets
    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
  • Industry funds
  • Self-managed super funds
  • Retail funds
  • Public sector funds
  • Corporate funds
  • Life office statutory funds
  • Small funds
  • Chart: Major Market Segmentation for the Superannuation 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 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
    Major Companies
    AMP LimitedCommonwealth Bank of Australia
  • Table: AMP Limited - financial performance
  • Table: Commonwealth Bank of Australia - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Superannuation 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
    Funds Under Management (Fum)
  • Represent 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.
  • 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 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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