Industry forecasters are predicting that Australia’s superannuation sector will experience significant growth in the 2014/15 financial year, with revenue expected to reach $14 billion.
The IBISWorld forecasts industries to rise and fall in the next financial year report, revealed super funds would continue to benefit from a large pool of accumulated savings in the system, IBISWorld general manager.
IBISWorld general manager, Daniel Ruthven predicted that the industry would experience revenue growth of 10.5 per cent in the next 12 months, with more than $800 billion in funds under management.
“Our expansive superannuation system is delivering strong returns for both investors and the funds themselves,” he said.
“Compulsory contributions increased at the beginning of 2013/14, further driving the amount poured into superannuation.
“This has been coupled with strong returns in the financial markets over the past five years, bolstering consumer sentiment and allowing for some increase in the demand for investment options carrying greater risk.”
The report also forecast strong growth in the mortgage sector with revenue set to top $80 billion, driven by favourable lending conditions, declining interest rates and government assistance packages aimed at boosting demand for property.
Amid Australians’ growing penchant for seamless digital experiences, an industry professional believes the most successful superannuation funds will be looking to leverage technology for their members in a number of ways.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Aware Super has outlined its systematic approach to corporate engagement as institutional investors increasingly assert their influence on company boards and take on an active stewardship role.
The country’s second-largest super fund has completed its fourth SFT this past financial year and welcomes almost 5,000 new members.
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