Super volatile: Sharemarket fluctuations lead to high revenue volatility for the industry

Industry super funds are one of five main types of superannuation funds in Australia. They are not-for-profit superannuation funds that operate for the benefit of their members. The Industry Superannuation Funds industry has performed strongly over the past five years, with funds under management and industry revenue supported by the strong performance of sharemarkets and the rising superannuation guarantee. Industry assets are expected to grow at an annualised 12.4% over the five years through 2017-18, to reach $538.1 billion. However, several events including the United Kingdom's EU referendum, the European sovereign debt crisis and the slow recovery of the US economy have created uncertainty for financial markets and caused significant fluctuations in industry revenue...read more.

Industry Statistics & Market Size
Revenue
$57bn
Annual Growth 13-18
5.1%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
1,435
Businesses
37
Market Share of Companies

Industry Threats & Opportunities

  • Industry superannuation funds are non-profit and operate for the benefit of their members
  • The characteristics of retail and industry super funds have been converging
  • As the asset base of super funds grows, regulation applied to the industry will also increase

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    Industry Report - Industry Investment Chapter

    The Industry Superannuation Funds industry is characterised by a low level of capital intensity. With the exception of computer systems, industry super funds have little depreciation expenses. Labour is employed to perform administrative duties within the funds, which may include custodian, advisory and investment services. Although many industry super funds typically outsource a majority of these tasks, some funds have established their own in-house investment management teams to deliver added cost savings for members.Capital intensity has increased over the past five years, with industry consolidation leading to lower wages and declining employee numbers, which has together contributed to a higher level of capital intensity. Exp...purchase to read more.

    Additional Insights for the Industry Superannuation Funds Industry

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

  • Economies of scale
  • Economies of scope
  • Having a high prior success rate

    • IBISWorld analysts also discuss how external factors such as All Ordinaries index and MSCI World Index in the Industry Superannuation Funds industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Industry Superannuation Funds Industry?

    Industry firms provide retirement benefits to members of specific industries. Industry revenue is primarily made up of investment revenue. Industry firms must have more than four members.

    Industry Products
  • Listed equities
  • Property
  • Fixed income
  • Cash
  • Other assets
    • Industry Activities
  • Operating industry super funds
    • 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
  • MSCI World Index
  • year bond rate
  • Residential property yields

    • Current Performance
  • Volatile markets
  • Industry versus retail
  • Other issues

    and trends

  • Chart: Revenue Growth

    • Industry Outlook
  • Reforms and regulations
  • Asset-liability match
  • Consolidation and other trends
  • Table: Industry Superannuation Funds Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Consumers

    • Key Selling Industries
  • Accounting Services
  • Life Insurance
  • Professional Services
  • Superannuation Funds Management Services

    • Products & Services
  • Listed equities
  • Fixed income
  • Other assets
  • Cash
  • Property
  • Chart: Industry Superannuation Funds Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Members aged between 35 and 49 years
  • Members aged between 50 and 59 years
  • Members aged under 35 years
  • Members aged between 60 and 65 years
  • Members aged over 65 years
  • Chart: Major Market Segmentation for the Industry Superannuation Funds Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Operating expenses
  • Chart: Cost Structure Benchmarking – Sector vs Industry Superannuation Funds

    • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industry Superannuation Funds Industry

    • Industry Globalization

    Major Companies

    AustralianSuper, UniSuper, Retail Employees Superannuation Trust, Sunsuper Superannuation Fund, Health Employees Superannuation Trust Australia, Construction and Building Unions Superannuation,
  • Table: AustralianSuper - financial performance
  • Table: UniSuper - financial performance
  • Table: Retail Employees Superannuation Trust - financial performance
  • Table: Sunsuper Superannuation Fund - financial performance
  • Table: Health Employees Superannuation Trust Australia - financial performance
  • Table: Construction and Building Unions Superannuation - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Industry Superannuation Funds 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 Industry Superannuation Funds Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total Assets (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Custodian
  • A financial institution that holds financial assets of firms and individuals for safekeeping.
    • Rse
  • Stands for registrable superannuation entity, which is a superannuation fund that is able to be registered by the Australian Prudential Regulation Authority.
    • Smsf
  • Stands for self-managed superannuation fund, which is a small funds operated by a sole contributor.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Industry Superannuation Funds 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
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    This report on Industry Superannuation Funds:
    • 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 Industry Superannuation Funds 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 Industry Superannuation Funds, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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