Industry to double size in decade
Thefinancial services industry will more than double in size to $1.4 trillion in assets over the next 10 years with an annualised growth rate of 8.15 per cent, according to research firmDexx&r.
The group made the predictions in its report —Market Projections of the Australian Financial Services Industry— released on April 7.
The projections, calculated using industry figures as at June 30, 2002, estimate greatest growth will occur in the area of post retirement products increasing by 14.2 per cent, with an estimate that retirement income funds under management (FUM) will increase from 5.7 to 9.5 per cent of industry assets in 10 years.
Dexx&r’s predictions also suggest the retail market will grow almost three-fold, with assets estimated to increase from $408 billion to $1.14 trillion, or from 31 to 43 per cent of industry assets.
Other estimations project industry superannuation assets (excluding post retirement products) will grow by 9.25 per cent per annum from $236 billion to $743 billion, with the growth predominantly being driven by master trusts, self-managed funds and personal superannuation.
The overall share of the industry’s FUM by super will increase from 62.9 to 66.9 per cent.
Dexx&r also notes that some movement of funds from wholesale super to retail will occur following impending legislative change, with self-managed (or DIY) super funds and employer-sponsored master trusts being the main beneficiaries.
The June 30, 2002, figures were collated using information collected from theAustralian Prudential Regulation Authority, theAustralian Bureau of Statisticsand various other financial institutions.
AUTHOR
Craig Phillips
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