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Prepared by Coredata
The Race To The Middle
September 2013
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Our Passion
Helping Our Clients Grow
We want to know what the world is thinking – where the changes are, where the energy is and what’s going to drive growth
Prepared by Coredata 3
The Growth Paradox
Everyone who can do simple mathsknows that the gold rush provided by the baby boom has peaked and that growth in financial services is going to have to come from somewhere new.
There is no population growth to speak of in Australia and certainly minimal wages and savings growth so superannuation, funds management and accounting services are all going to have to look outside natural growth to achieve their targets.
One way to look at this is to examine the intentions of the various market segments, the high volume-low touch industry funds, the medium service-medium touch retail funds and the high touch-low volume (by client) private client businesses.
It’s our contention that all of these businesses will start to compete in the same place – starting a desperate race to the middle for the funds management industry in a move which will slash margins and turn the entire industry into a scale and volume play.
Added to this is the change to the legislation which insists that every accountant that is going to give advice must be licensed, which means that accountants are now going to compete head to head with planners. The unintended outcome of this is that there are 10 times as many accountants as planners.
As Damon Runyon said when he misquoted Ecclesiastes: the race doesn’talways go to the swift or the battle to the big battalions – but that’s the way to bet.
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Breaking Up The Market
4Wholesale Retail
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High Volume – Low Touch
Low Volume High Touch
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Where Industry Funds Have Lived
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Industry Funds
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Where Retail Funds Have Lived
6Wholesale Retail
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Industry Funds
Retail Funds
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The Arena Of The Private Banks
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Industry Funds
Retail Funds
Family Offices
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Where The Customer Think Brands Sit
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Industry Funds
Retail Funds
Family Offices
• Australian Super
• Host Plus
• Rest • BT Super For Life
• AMP Super
• Myer Family Company
• Financial Wisdom
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The Blue Ocean Spaces Are Occupied
9Wholesale Retail
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Industry Funds
Retail Funds
Family Offices
• Australian Super
• Host Plus
• Rest • BT Super For Life
• AMP Super
• Myer Family Company
• Financial Wisdom
Online Platforms
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The Ocean Is Red
10Wholesale Retail
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Industry Funds
Retail Funds
Family Offices
• Australian Super
• Host Plus
• Rest • BT Super For Life
• AMP Super
• Myer Family Company
• Financial Wisdom
Online Platforms
• CommSec• NAB Wealth
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The Challenge Coming For Retail
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Industry Funds Platform Offerings
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The Challenge Coming for Everyone
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Industry Funds Platform Offerings
Retail Funds
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The Desperate Need For Scale
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Industry Funds Platform Offerings
Retail Funds
Family Offices
Platfo
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fferings
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The Real Blue Ocean
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Industry Funds Platform Offerings
Retail Funds
Family Offices
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THE Advised
SMSFLandscape
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Where Planners Sit Now
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Industry Funds Platform Offerings
Retail Funds
Family Offices
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The Unintended Consequences of FOFA
16Wholesale Retail
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Industry Funds Platform Offerings
Retail Funds
Family Offices
Platfo
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fferings
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ENDS
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