Market day: Strong domestic sharemarket returns have increased industry profitability

The Financial Asset Investing industry consists of units mainly engaged in investing money on their own account in predominantly financial assets such as shares, bills and bonds. Industry revenue largely depends on the performance of domestic and international financial markets. A strong domestic sharemarket performance and a significant rise in industry participation have fuelled industry revenue growth over the past five years. Industry revenue is forecast to rise at an annualised 1.3% over the five years through 2017-18 to reach $26.9 billion. Due to a projected slowdown in both industry participation and domestic sharemarket returns, industry revenue is anticipated to decline by 0.1% in the current year...read more.

Industry Statistics & Market Size
Revenue
$27bn
Annual Growth 13-18
1.3%
Forecast Growth 18-23
Profit
Employment
7,970
Businesses
32,967
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Report - Industry Products Chapter

The industry comprises various investment vehicles that are used by individuals, corporations and foreign investors. Industry players compile these funds and invest them on behalf of their clients. However, industry players do not charge commission fees or provide advice for clients, as these activities are included in the Funds Management and Other Investment Services industry. Each industry segment is divided based on its contribution to industry assets.Wholesale trustsWholesale trusts hold most of the industry's assets. Wholesale trusts are not listed on the stock exchange and are typically only available for sophisticated investors or institutional clients. Ass...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 a well-defined strategy/goal
  • Management of a high quality assets portfolio
  • Understanding government policies and their implications
  • IBISWorld analysts also discuss how external factors such as NZX 50 index and MSCI World Index in the Financial Asset Investing industry impact industry performance..

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    What's in this report

    What is the Financial Asset Investing in New Zealand Industry?

    This industry consists of trusts 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 and units providing benefits through superannuation funds are excluded from the industry.

    Industry Products
  • Wholesale trusts
  • Retail unit trusts
  • Cash management trusts
  • Other investment vehicles
  • Industry Activities
  • Investment operation (own account)
  • Unit trust operation (except trust management on a commission or fee basis)
  • Holding company operation
  • Charitable or education trust operation
  • Friendly society operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • NZX 50 index
  • MSCI World Index
  • year bond rate
  • Trade-weighted index

  • Current Performance
  • Domestic sharemarket volatility
  • Fees and profitability
  • Falling cash rate
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition for funds
  • Market conditions
  • 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 in New Zealand
  • Health Insurance in New Zealand
  • General Insurance in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Funds Management and Other Investment Services in New Zealand

  • Products & Services
  • Wholesale trusts
  • Retail unit trusts
  • Cash management trusts
  • Other investment vehicles
  • Chart: Financial Asset Investing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Corporations
  • Retail investors
  • 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
  • Internal competition
  • External 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fintech
  • A class of companies that use technology to make financial services more efficient.
  • Kiwisaver
  • A voluntary, work-based retirement savings initiative that provides members with benefits such as tax credits.
  • Sophisticated Investor
  • A high net worth individual with experience in investing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Financial Asset Investing in New Zealand 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.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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