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
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.
(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.
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:
National Leader, Wealth management
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