Rocky road: Industry investment revenue has fluctuated due to volatile global share markets

Retail super funds account for the second-largest asset base in the superannuation sector, behind SMSFs, and represent a significant part of the Australian financial system. The Retail Superannuation Funds industry's revenue is expected to decline at an annualised 0.5% over the five years through 2018-19, to $51.3 billion. This includes an anticipated 6.6% fall in 2018-19. However, industry revenue is volatile, and fluctuations in investment returns can cause revenue shocks. Due to this volatility, revenue is not an accurate representation of industry performance and size. Funds Under Administration (FUA) provide a better indication, and these are expected to grow at an annualised 6.0% over the five years through 2018-19, to $681.8 billion...read more.

Industry Statistics & Market Size
Revenue
$51bn
Annual Growth 14-19
-0.5%
Forecast Growth 19-24
Profit
Employment
8,130
Businesses
115

Industry Threats & Opportunities

  • Industry revenue is extremely volatile, due to fluctuations in investment returns
  • A string of new regulations has been introduced over the past five years, affecting industry players
  • SMSFs and industry super funds are projected to continue growing in popularity
  • Industry Report - Starting a New Business Chapter

    The Retail Superannuation Funds industry exhibits high barriers to entry due to the increasing scale of the major players. The largest industry super funds are successful because of their size and profile within the market. This reduces the expense ratio, or the costs spent on investment and administration. Larger funds can also provide members with a wider variety of investment options to cater for multiple scenarios and changing preferences. The larger players also have numerous cross-selling opportunities from other banking and financial services offered due to the scope of their operations.Retail superannuation funds must also be approved by the Australian Prudential Regulation Authority. Trustees must meet minimum capital requirements of $5.0 mi...purchase to read more.

    Additional Insights for the Retail Superannuation Funds Industry

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

  • Economies of scope
  • Having a high prior success rate
  • Willingness to outsource when appropriate
  • IBISWorld analysts also discuss how external factors such as All Ordinaries index and MSCI World Index in the Retail Superannuation Funds industry impact industry performance..

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    What's in this report

    What is the Retail Superannuation Funds Industry?

    Industry firms provide retirement benefits to the general public on a commercial and for-profit basis. These firms must have more than four members. Industry revenue is primarily made up from investment revenue.

    Industry Products
  • Cash
  • Fixed income
  • Equities
  • Property
  • Other assets
  • Industry Activities
  • Operating super funds
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • All Ordinaries index
  • MSCI World Index
  • year bond rate
  • Residential property yields

  • Current Performance
  • Structure and landscape
  • Revenue attributes
  • Regulatory changes
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory changes
  • Competitive environment
  • Investment opportunities
  • Table: Retail Superannuation Funds Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Accounting Services
  • Life Insurance
  • National and Regional Commercial Banks
  • Superannuation Funds Management Services

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

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Operating expenses and other
  • Chart: Cost Structure Benchmarking – Sector vs Retail Superannuation Funds

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    AMP Limited, National Australia Bank Limited, Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group Limited,
  • Table: AMP Limited - financial performance
  • Table: National Australia Bank Limited - financial performance
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Australia and New Zealand Banking Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Retail 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
    Table: Industry Data for the Retail Superannuation Funds 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 Administration (Fua)
  • Funds that are administered by retail super funds on behalf of their members.
  • Self-Managed Super Funds
  • Self-managed super funds refer to super funds managed by the contributor. This increases a person's control over their assets, however there are high costs and risks associated with this.
  • Superannuation Guarantee
  • The mandatory contributions made by employers to the superannuation funds of employees.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Retail Superannuation Funds market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Retail 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 Retail 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 Retail 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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