More than 90 per cent assets directly held by clients
More than 90 per cent of personal investments are held directly by individuals rather than investment products and platforms provided by major wealth managers, according to a new Rice Warner report.
This reflects substantial holdings in cash and term deposits (33 per cent), investment property (46 per cent) and shares (10 per cent), with other asset classes making up the rest.
However, assets held on investment platforms will almost double by 2026, with wrap platforms to be the fastest growing market, according to Rice Warner predictions.
"Assets held on wrap platforms and investment master trusts combined will grow to be more than two and a half times their current level (in 2011 dollar terms) in 15 years' time," the report predicted.
The Rice Warner Personal Investments Market Projections Report 2012 revealed the personal investments market - which includes personal investments held in banks, shares and investment properties - sat at $1.9 trillion at 30 June 2011, which compares to $1.3 trillion currently sitting in superannuation assets.
"Whilst superannuation will grow more quickly in the future due to the significant compulsory component, the personal investment market will become increasingly important as Australians seek flexibility of access to their savings and concessional contribution caps, and other tax changes dampen the attractiveness of investing in superannuation," director of Rice Warner Richard Weatherhead said.
The ease and simplicity of straightforward bank and term deposits might lose their appeal when the cost of investment platforms falls and their sophistication, along with reporting capabilities, increases.
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
The alternative asset manager has expanded its Singapore office with a head of Asian distribution, representing a “critical step” for the Asian business, where it is seeking to launch new offerings.
