In the first six months of 2005 there has been a 6 per cent increase in the number of financial planners in the industry, according to a new study.
And choice of fund may be one of the main reasons for this increase according to KPMG’s State of Investment Management Industry report for Australia and New Zealand.
The lift in the number of financial advisers in the market is in contrast to the previous year that saw a fall in the profession’s ranks. In 2005 the size of the financial advisory industry in terms of number of planners has experienced growth of 6 per cent. The anticipated impact of choice of fund was the most likely driver of this turn around and is a welcome fillip for the profession after the negative impact of financial services reform felt in 2004.
The first half of the year has also witnessed several mergers, acquisitions and joint ventures between some of the larger industry players including such organisations as Challenger and HSBC Asset Management, Mercer Human Resources and Mellon Human Resources, and IOOF and AM Corp. Many firms have pursued this course of action to best facilitate a greater diversity in income streams and benefit from increased scale.
In the March quarter of 2005 the industry managed to raise the level of its total consolidated assets by $26.1 billion representing a 3.2 per cent increase. The sum of the consolidated assets now stands at $838.7 billion. In the individual asset classes cash and deposits rose by $7.7 billion, equities and units in trusts went up by $7.6 billion, while short-term securities received a $4.6 billion boost.
