Smart money: Limited competition has enabled larger firms to increase prices and profit

Firms in the Independent Investment Research Services industry provide an essential service to financial advisers, fund managers, superannuation funds, institutional investors and retail investors. The industry researches and rates various investment and superannuation funds to provide clear, unbiased information to large and small investors, helping to establish the optimal investment products to include in their portfolios. Research firms also provide other valuable quantitative and qualitative research and information products to assist investment companies to develop financial models and make investment choices.Some fund managers have paid research firms to rate their products, leading to accusations of conflicts of interest...read more.

Industry Statistics & Market Size
Revenue
$243m
Annual Growth 13-18
4.1%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
1,088
Businesses
41
Market Share of Companies

Industry Threats & Opportunities

  • New regulations and perceptions of bias have led to a move towards subscription-based services
  • Growth in the number of potential major industry clients has slowed over the past five years
  • Subscription services and opportunities to upgrade clients will contribute to industry growth

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    Industry Report - Industry Investment Chapter

    The capital intensity level provides an indication of the capital requirements needed to operate in the industry compared with labour inputs. As independent investment research service providers rely heavily on labour inputs and data analysis of the financial and investment performance of managed funds and other financial products, the industry has low capital requirements. The main expenditure on capital equipment is for computer and networking systems.In 2017-18, for each dollar required for labour inputs, approximately $0.09 is anticipated to be required for capital inputs, such as computers and equipment. This indicates the industry has low capital input requirements. Capital intensity has remained stable over the past five years. Thi...purchase to read more.

    Additional Insights for the Independent Investment Research Services Industry

    IBISWorld has determined the most important Key Success Factors for the Independent Investment Research Services are:

  • Ability to alter goods and services produced in favour of market conditions
  • Ability to raise revenue from additional sources
  • Access to highly skilled workforce

    • IBISWorld analysts also discuss how external factors such as Demand from financial planning and investment advice and Demand from finance in the Independent Investment Research Services industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Independent Investment Research Services Industry?

    Industry firms provide independent, third-party investment research to institutional and individual investors, corporate issuers and financial services firms. This research is generally provided to clients on the ‘buy-side’ of the investment market, such as fund managers and institutional investors. Companies that provide ‘sell-side’ investment research, such as investment banks and commercial banks, are excluded from this report.

    Industry Products
  • Investment research subscription services
  • Pay-for-ratings services
  • Research consulting services
  • Other investment and research services
    • Industry Activities
  • Providing ratings services for financial and investment products
  • Providing subscription products for financial and investment products
  • Providing independent investment research and consulting services
  • Providing other investment and research products and 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 financial planning and investment advice
  • Demand from finance
  • Demand from superannuation funds
  • Demand from superannuation funds management services
  • year bond rate

    • Current Performance
  • Revenue and

    industry changes

  • Establishments and employment
  • Conflicts of interest
  • Chart: Revenue Growth

    • Industry Outlook
  • Revenue and

    profit growth

  • ASIC regulation
  • Future growth areas
  • Table: Independent Investment Research Services Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Independent Investment Research Services Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Financial Asset Investing
  • Superannuation Funds
  • Finance
  • Financial Planning and Investment Advice
  • Consumers

    • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling
  • Data Processing and Web Hosting Services

    • Products & Services
  • Investment research subscription services
  • Pay-for-ratings services
  • Other investment and research services
  • Research consulting services
  • Chart: Independent Investment Research Services Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Financial advisers
  • Fund managers
  • Financial organisations and investment companies
  • Retail investors
  • Chart: Major Market Segmentation for the Independent Investment Research 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 Independent Investment Research Services

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Independent Investment Research Services Industry

    • Industry Globalization

    Major Companies

    Morningstar Group (Australia) Pty Limited, Marsh Mercer Holdings (Australia) Pty Ltd, Lonsec Holdings Pty Ltd, Zenith Investment Partners Pty Ltd,
  • Table: Morningstar Group (Australia) Pty Limited - financial performance
  • Table: Marsh Mercer Holdings (Australia) Pty Ltd - financial performance
  • Table: Lonsec Holdings Pty Ltd - financial performance
  • Table: Zenith Investment Partners Pty Ltd - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Independent Investment Research 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 Independent Investment Research Services 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

    Jargon & Glossary

    Buy-Side
  • The buy-side includes entities that purchase shares and other financial assets on their own account. These include superannuation funds, fund managers, institutional investors and retail investors.
    • Institutional Investors
  • Institutional investors include large companies, banks, insurance companies and other funds that buy and sell shares and other financial products in large volumes for their own portfolios.
    • Retail Investors
  • Retail investors are individuals and small entities that buy and sell shares and other financial products in small volumes for their own portfolios.
    • Sell-Side
  • The sell-side provides information to the firms' clients, with the intention of this research being used in client portfolios. The sell-side sells this information to the buy-side.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Independent Investment Research 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 Independent Investment Research 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 Independent Investment Research 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 Independent Investment Research Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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