Funds Management Services in Australia - Industry Market Research Report

Rainy day fund: Volatile financial markets have managed to cut revenue despite growth in assets

Funds management services have grown in recent years as the portion of funds sourced from overseas markets has significantly increased. Overseas markets have given fund managers access a larger asset bases, and boosted volumes of assets under management (AUM). Despite a larger international presence, fund management services revenue is expected to grow only marginally, at an annualised 0.1% through the end of 2022-23, to $11.6 billion. The COVID-19 outbreak and subsequent inflationary pressures led to significant uncertainty and volatility in financial markets and caused global economic headwinds. A wider general recovery from the pandemic's negative economic effects has benefited the size of funds under management. However, continued volatility in financial markets has subdued revenue, with a 4.5% decline anticipated in 2022-23. Trade tension between Australia and China is likely to further constrain fund management service growth in the current year.

Fund management service providers mainly provide funds management services, including insurance funds management, public offer unit trusts, government funds and overseas funds. Fund management services generate income by providing portfolio investment services and investment consultant services on a commission and fee basis. The industry excludes superannuation funds management.

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.