Financial Asset Investing in Australia - Market Research Report

Fully invested: Renewed investor confidence to support industry revenue growth

Financial asset investors have benefited from a generally strong domestic sharemarket performance over the past five years. Typically, industry funds are invested in equities and industry revenue depends on various sharemarket performances. The COVID-19 pandemic and ensuing inflationary pressures significantly disrupted both local and global equity markets, which limited industry performance. Yet, total assets have continued to accumulate over recent years compounding returns for investors, assisted by previously low interest rates. Overall, industry revenue is expected to rise at an annualised 4.2% over the five years through 2023-24, to $143.2 billion.

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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.