Direct share ownership past its peak
Share ownership in Australia peaked nearly three years before the onset of the global financial crisis (GFC), according to data released by CommSec to celebrate its 20th anniversary of its establishment as the Commonwealth Bank's direct share trading arm.
The CommSec analysis, largely based on an Australian Securities Exchange (ASX) survey, revealed that, in 2004 55 per cent of Australians were estimated to have owned shares but, since that time, direct ownership has since fallen from 44 per cent of Australians to 33 per cent while indirect ownership has fallen from 32 per cent to 10 per cent.
The CommSec analysis also confirmed what most Australian financial planners already know — that the incidence of share ownership rises with age, income level and education.
The CommSec data pointed to the fact that 55 per cent of direct investors had bought or sold shares in the previous two years and that 26 per cent thought they would buy shares over the coming year while 21 per cent were undecided.
It said that 21 per cent of Australians owned a residential investment property.
The CommSec analysis said that over the past 20 years, consumer prices had increased by just over 67 per cent, but this had been more than exceeded by the average wage, which had more than doubled — lifting by 128 per cent from almost $33,000 to almost $77,000.
It said that, interestingly, while the average wage had more than doubled over the past 20 years, wealth had more than tripled, courtesy of higher returns on shares and property. Per capita wealth stood at almost $97,000 in 1995, whereas now it is more than $340,000.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
