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Next waves: Wealth management

Growth strategies for Australia

Two trillion dollars, a sophisticated finance sector and Asian growth: that’s the short version of why Australia has a shot at being a global competitor in the business of managing people’s money.

 
Neil Brown discusses how to catch the wealth management wave
[00:59 mins]

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Funds under management (FUM) in Australia now total about $2.1 trillion, split among superannuation (about $1.5 trillion), life insurance, retail unit trusts and other vehicles.(1) That is mainly local money being managed for 11 million Australian superannuation members.(2)

But as the fourth-largest such pool worldwide, it’s a big base and one that is expected to more than triple in size to reach $7.6 trillion in 2033. Couple the size of our FUM with the growth of wealth in Asia – more than three billion people in Asia are forecast to become middle class by 2030, and by 2050 the region is expected to be home to more than half of the world’s financial assets – and you get a huge pot of untapped demand, and a potentially high-growth story for Australia.

Source:
(1) Australian Bureau of Statistics, 31 March 2013, www.abs.gov.au/ausstats/abs@.nsf/mf/5655.0
(2) Deloitte Actuaries & Consultants, ‘The Dynamics of the Australian Superannuation System: the next 20 years 2011–2030’, 2013.

Positioning for prosperity?

Australia can leverage its strong domestic wealth management story to tap into the burgeoning Asian wealth industry and other opportunities in the financial sector. But we’ll need to play our cards right to compete with the region’s major financial centres such as Hong Kong and Singapore. Just some of the difficult questions to answer are:

  • Can we further streamline our regulatory environment?
  • What incentives do we need to put in place to attract global savings to Australia?
  • Could we leverage our trade integration with financial firms, governments and companies to market our wealth management capabilities overseas more effectively?
  • Are there ways to improve and capitalise on our cultural ties with individuals, business organisations and governments across Asia and beyond?

Talk to our experts

Neil Brown, National Leader Wealth management Neil Brown
National Leader, Wealth management
Tel: +61 3 9671 7567
Email

 

Related insights

  • Dynamics of the Australian Superannuation System
    Reports on the Growth of the Australian superannuation system, Pre- and post-retirement sectoral battlegrounds, The impact of the GFC & Generational shifts.
    Deloitte report, September 2013 | 32 pages

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