Table of Contents
- OVERVIEW
- 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
- TABLE OF CONTENTS
- TABLE OF TABLES
- 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) fund market in 2006
- 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
- Definitions
- Brokerage Firms
- Fund Supermarket
- Household savings and investments
- Investment Funds
- Managed Funds
- Retail Funds
- Self Managed Superannuation Funds
- Superannuation fund
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Australian household savings and investments market, USDm,
2002-06
- Table 2: Australian household savings and investments market, AUDm,
2002-06
- Table 3: Total investment (non-superannuation) funds under management
segmented by investor type
- Table 4: Consolidated assets of managed funds segmented by institution
type, December 2005-06
- Table 5: Retail funds under management segmented by fund
administrators, AUDm, June 2006-07
- Table 6: Gross fund inflows segmented by fund administrators, AUDm,
June 2006-07
- Table 7: Retail fund net flow segmented by fund administrators, AUDm,
June 2006-07
- Table 8: Retail fund net flow segmented by investment type, AUDm, June
2006-07
- Table 9: Forecast of the Australian household savings and investments
market in USDm, 2007-2011
- Table 10: Forecast of the Australian household savings and investments
market in AUDm, 2007-2011
- Table 11: Retail fund inflow segmented by market, AUDm, Q1 2007- Q2
2007
- Table 12: Comparison of some leading Australian fund supermarkets
- Table 13: CFS FirstChoice superannuation and investment funds fee
structure
- Table 14: BT superannuation and investment fund fee structure
- Table 15: MLC superannuation and investment fund fee structure
- Table 16: AMP superannuation and investment fund fee structure
- Table 17: Management fees of MLC investment options have dropped since
2003
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