Australia’s personal investments market – with total assets of $2,242 billion at June 30, 2015 against $2,032 billion in superannuation at the time – is set to keep growing strongly at 4% a year in real terms over the next 15 years.
Rice Warner’s recently-published Personal Investments Market Projections 2015 report points to opportunities for wealth industry participants to capitalise on this sustained growth. These opportunities include the expected growing popularity among personal investors of increasingly-sophisticated, more cost-efficient wrap platforms and a continuing surge in demand for Exchange Traded Funds (ETFs).
The vast majority of (non-superannuation) personal investments are currently held directly by individuals with just 3.2% held through investment products and platforms. This reflects substantial holdings in directly-held cash and term deposits (41% of personal investments), directly-held investment property (42%) and directly-held equities (11%).
However, Rice Warner expects a significant movement from directly-held investments to investments held on platforms. As a result, the value of personal investments held on platforms is projected to rise from $71 billion in June 2015 to $315 billion over 15 years in today’s dollars – up by more than four times.
Wrap platforms, including separately-managed accounts and model portfolio products, will be the fast-growing personal investment segment with its market share growing from 3.2% to 7.8% by June 2030.
Rice Warner’s Personal Investments Market Projections 2015 report closely examines changing consumer preferences and market developments to make our projections. Key findings include…
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