Agency Blog

The Australian funds management distribution market is experiencing significant transformation as we move into 2025. In the face of evolving industry dynamics, fund managers are contending with a declining financial adviser base, institutional market consolidation, intensifying competition, fee compression, and shifting investor preferences. This update delves into the key trends, challenges, and opportunities shaping the market, offering actionable insights on how fund managers can adapt and succeed in this changing environment.   1. The Shift to Direct-to-Consumer Models One of the most pressing challenges for fund managers is the continued decline in the number of financial advisers in Australia, which has dropped below 16,000, according to the latest Wealth Data figures. This reduction has prompted fund managers to explore direct-to-consumer (DTC) distribution models, mirroring trends observed in other global markets. The shift to DTC requires fund managers to establish direct relationships with investors and offer seamless, high-quality digital experiences that align with the growing demand for consumer-grade interactions. To compete in this evolving environment, fund managers must enhance their digital capabilities and tailor their offerings to effectively engage and retain investors. Reference: https://www.moneymanagement.com.au/news/financial-planning/how-much-could-adviser-numbers-grow-5-years   2. Superannuation Fund Mergers and Market Consolidation The Australian superannuation market is undergoing continued consolidation, driven by external pressures such as cost-efficiency mandates and the performance benchmarks introduced under the Your Future, Your Super (YFYS) legislation. This trend is expected to result in a market dominated by a few large mega-funds, making fund managers to adapt their strategies to align with the preferences of these dominant institutions. To remain competitive in this evolving environment, fund managers must prioritise scale, efficiency, and performance. By doing so, they can remain competitive in the evolving environment.   3. Managed Accounts: Growth and Adoption The rapid growth of managed accounts is reshaping the Australian funds management distribution market. According to…

In 2024, the Australian investment and wealth management industry is navigating a period marked by changing market conditions, regulatory shifts, and evolving workforce expectations. Bonuses and salary increases have become critical factors in attracting and retaining top talent, especially as firms strive to balance performance incentives with cost management amid uncertain economic landscapes.   Trends in Bonuses Bonuses have historically played a significant role in the investment and wealth sector, rewarding high performers for achieving key financial goals and enhancing client satisfaction. In 2024, however, many companies are re-evaluating their bonus structures. While bonuses remain attractive, there’s a growing emphasis on tying rewards more closely to individual, team, and firm-wide performance metrics, which could include global performance. This shift aims to foster a culture of accountability and to ensure that compensation packages align with the company’s global financial health. In high-demand areas such as private equity and asset management, salary and bonus has been a regular topic through 2024.   Salary Increases in 2024   The tight labour market and increased competition for certain skillets have put upward pressure on salaries in 2024. In response, many firms awarded salary increases to retain key employees and to attract new talent, resulting in a lower allocation of overall budgets for less staff. This is particularly notable in Melbourne and Queensland, where lower volumes of talent create more demand for experienced talent. Early-career professionals that began careers in the last 2-3 years have seen above market entry salaries, which have been marginally increased and still higher than more norms prior to COVID.  These employees, often drawn to the sector for its growth potential, often have an expected salary growth to match their career progression. Therefore, we have seen younger employees more inclined to switch firms for higher pay if career growth seems limited….

Job hunting can be a daunting and stressful process. You need to stand out from the crowd and impress potential employers with your skills, experience and personality. But how do you prepare for this challenge and perform well during the recruitment process? Here are some tips that are not commonly discussed, but can make a big difference in your job search and application: Research the company and the role.  Before you apply for a job, you should do some background research on the company and the role you are interested in. This will help you tailor your resume and cover letter to match the specific requirements and expectations of the employer. It will also help you prepare for the interview, as you will have some knowledge of the company’s culture, values, goals and challenges. Find information about the company, such as its history, mission, vision, products, services, competitors, customers, achievements, awards, news, reviews and social media presence. Use keywords and phrases that match the job description.  When you write your resume and cover letter, you should use keywords and phrases that match the job description and highlight your relevant skills and experience. This will help you pass the initial screening. A web search will quickly yield examples of resume and cover letters that are similar to the job you are applying for but always take the time to personalise them to capture your unique skills, experience and personality. Highlight how your expertise is increasingly relevant based on current trends and issues in your industry and profession to help your application stand out. Create a personal brand online.  In today’s digital world, employers often check candidates’ online presence to get a sense of their personality, interests, values and professionalism. You should create a personal brand online that showcases your skills, achievements,…