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Research Reports » Australia Report 2020

Building stability in the wake of Covid

During the Covid-19 pandemic, the investment funds industry has been required to adapt at short notice to remote working and, more than ever, to respond to customer service requests and trading instructions through digital channels. Technology has been key, enabling remote meetings and due diligence, facilitating automation across the transaction lifecycle, and delivering a more dynamic digital experience for investors. But where does the industry lie in its technology journey? How effective is it at applying innovation? And where can it improve?

Funds Global Asia, in association with Calastone, surveyed the industry to provide answers to these questions. Among its main findings:

  • 73% of respondents say there will be further consolidation in Australia’s superannuation industry to reduce costs.
  • 51% say that Australia’s superannuation funds need to offer better investment choices to scheme members, enabling them to avoid poorly performing default funds.
  • 59% say Australia’s investment adviser sector will contract due to regulatory pressure.
  • 89% say it is important for Australian investors to diversify their exposure to managed funds that invest abroad.
  • 76% say Australian investors will increase investment in ETFs in the coming 12 months.
  • 66% say that, post-Covid, the greatest challenge for fund managers will be in reaching the right target audience and opening new distribution channels.
  • 78% say that Australia’s funds industry will spend more on technology post-Covid.

For the third year, Funds Global Asia has partnered with Calastone to produce a survey of key trends in the asset management industry in Australia. We developed this survey, sent to respondents in Australia, to evaluate industry views on questions of particular relevance to this market. This complements two similar surveys evaluating dominant trends in the European and UK funds industry (published in March) and in Asia (published in July).

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