Report Buyer Logo
Report Buyer (http://www.reportbuyer.com)
Report Summary
New business sales in Australia for retail managed funds increased 29%, from USD179.6 billion for the year-ended June 2006, up to USD230.5 billion for the year-ended June 2007. Australia's biggest banks dominated new business sales with St George, Westpac and NAB receiving the highest annual growth.
Industry experts feel that fund costs are likely to decline further as competition between fund supermarkets intensifies, especially surrounding the superannuation market. Financial adviser fees are currently under scrutiny from the industry and media sources and customers are likely to reap the rewards of tighter adviser costs in the future.
Get an overview of the scope of the investment fund market, including past growth and future growth.
Understand key current and future market drivers and their implications for fund supermarkets and fund managers.
Use our analysis to inform fund marketing and distribution strategies and adapt to changes in the fund supermarket model.
Reasons to Purchase
Contents
Executive Summary
The Australian managed fund market is the fourth largest in the world
Household funds are set to increase between 2007-2011
The new reforms will see more money enter superannuation
Competition between Australian fund supermarkets is intense
The future of supermarkets is bright
Distribution Dynamics
The Australian managed fund market is the fourth largest in the world
Market Size
Households accounted for 42% of the Australian investment (non-superannuation)
Australia is the fourth largest market in the world and the biggest in Asia Pacific for managed funds
Superannuation funds account for over half the Australian managed fund market
Demand for managed funds is increasing
The major local banks hold over half the total retail managed funds in Australia
Fund supermarkets have a number of advantages
Australia's biggest banks also dominate the fund supermarket space
St George and BT/ Westpac recorded the highest annual growth of retail fund inflows
Macquarie received the largest share of fund net flows for the year-ended June 2007
Customer Characteristics
The average Australian fund supermarket customer is middle-aged and investing for retirement
Over 50% of retail managed fund net flow is into superannuation
More Australians own superannuation then before
Distribution Forecasts
Household funds are set to increase to USD131bn between 2007-2011
Regulatory Climate
The new reforms will see more money enter superannuation
Australians have benefited from the recent superannuation changes
Individuals aged 60 and over can access their superannuation benefit tax-free
Limitations on concessionally taxed superannuation contributions have changed
Post- tax superannuation contributions are limited to AUD150,000 per annum
The transitional AUD1 million contribution limit served to boost fund inflows
Distributor Profiles
Competition between Australian fund supermarkets is intense
Colonial First State has a relatively large fund offering
Colonial First State offers one of the widest ranges of funds
CFS's charging structure is low for the industry
CFS offers other core services
Advisers and clients have access to FirstNet services
The CFS website offers high functionality
BT is a leading white label Australian fund supermarket
BT offers a relatively small range of funds to direct investors
BT's charging structure is average for the industry
BT offers other core services
BT does not offer online application to all fund types
MLC is a leading 'manager of managers'
MLC offers a relatively small range of funds to investors
MLC's charging structure is standard for the industry
MLC offers other core services
MLC does not offer online application to its funds
AMP Financial Services is one of the biggest Australian fund supermarkets
AMP offers a large range of funds to investors
AMP's charging structure is high for the industry
AMP offers other core services
AMP does not offer online application to its funds
Fees and charges have been driven down by competition
Distribution Strategies
The future of supermarkets is bright
Fund selection is driven by client demand
Platform selection is based on strategic fit
Marketing strategies will depend on the target group
Fund supermarkets will continue to be an important distribution channel for managed funds into the future
The increasing popularity of self managed superannuation funds will require fund hosts and fund providers to track their developments
A reduction in the charging structure of managed funds will encourage participants to focus on new revenue streams
Volatility in the markets will result in an increased customer demand for structured and alternative investments
Appendix
Brokerage Firms
Fund Supermarket
Household savings and investments
Investment Funds
Managed Funds
Retail Funds
Self Managed Superannuation Funds
Superannuation fund
Further reading
Ask the analyst
Datamonitor consulting
“Fund Supermarkets In Australia 2007” is available from Report Buyer. For more information go to: http://www.reportbuyer.com/
Piribo Product ID: DAT07892
Photo:
http://www.prlog.org/
