Greatest asset: Increasing profit margins have attracted new enterprises to the industry

The Financial Asset Investing industry has benefited from a strong domestic sharemarket performance over the past five years. As most industry funds are invested in equities, industry revenue depends on the performance of global sharemarkets. Due to a strong domestic sharemarket performance and a flow of funds from foreign investors for Australian investment vehicles, industry revenue is expected to grow at an annualised 1.9% over the five years through 2019-20, to $11.1 billion. Revenue is anticipated to increase by 2.9% in the current year, as more funds from overseas investors boost the value of industry assets.Market volatility has continued to affect the industry since the global financial crisis...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 15-20
1.9%
Forecast Growth 20-25
Profit
Employment
27,571
Businesses
43,167
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Revenue has grown as more funds from overseas investors have boosted the value of industry assets
  • The Australian dollar’s depreciation has helped the industry attract foreign funds
  • Rising household discretionary incomes are projected to contribute to industry asset growth
  • Industry Report - Industry Investment Chapter

    The Financial Asset Investing industry has low capital intensity. For every dollar paid as wages, an estimated $0.10 is spent on capital investment. The industry has a low reliance on fixed assets, such as plant, equipment and buildings for day-to-day operations. Financial asset investing is labour-intensive, requiring knowledgeable staff that are experienced with investing and managing portfolios. The industry also has significant administrative requirements, particularly regarding executing trades and managing the associated paperwork. For this reason, most costs incurred by industry enterprises relate to wages and management fee expenses...purchase to read more.

    Additional Insights for the Financial Asset Investing Industry

    IBISWorld has determined the most important Key Success Factors for the Financial Asset Investing are:

  • Having an effective performance monitoring system
  • Having a well-defined strategy/goal
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as All Ordinaries index and year bond rate in the Financial Asset Investing industry impact industry performance..

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    What's in this report

    What is the Financial Asset Investing Industry?

    The Financial Asset Investing industry consists of trusts (except trusts of separately constituted superannuation funds) 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 are excluded from the industry.

    Industry Products
  • Cash management trusts
  • Common fund trusts
  • Friendly societies
  • Listed unit trusts
  • Unlisted unit trusts
  • Industry Activities
  • Friendly society operation
  • Unit trust operation (except trust management on a commission or fee basis)
  • Holding company operation
  • Charitable or education trust operation
  • Investment operation (own account)
  • 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
  • year bond rate
  • MSCI World Index
  • Trade-weighted index

  • Current Performance
  • Market volatility
  • Fixed-income assets
  • Fees and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Investor confidence
  • Inflow of funds
  • Competition from superannuation funds
  • 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
  • Health Insurance
  • General Insurance
  • Consumers

  • Key Selling Industries
  • Custody, Trustee and Stock Exchange Services
  • Funds Management Services

  • Products & Services
  • Unlisted unit trusts
  • Listed unit trusts
  • Cash management trusts
  • Common fund trusts
  • Friendly societies
  • Chart: Financial Asset Investing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Pension funds
  • Financial corporations
  • Foreign investors
  • Government and non-financial corporations
  • Households
  • 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Total Assets (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Closed-End
  • An investment model where a fixed number of units are issued and no additional units are issued for new investors.
  • Investment Vehicle
  • A financial product such as stocks, bonds, or futures that an investor can put funds into with the goal of generating a return.
  • Management Expense Ratio
  • A fund's fees and expenses expressed as a percentage of assets.
  • Msci World Index
  • A benchmark index of the performance of global equities.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Financial Asset Investing 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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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