The Superannuation Fund Industry And How. Hypothetical Fund

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TABLE OF CONTENTS 1. Introduction2 1.1. Purpose2 1.2. Background information2 1.3. Scope2 1.4. Limitations2 2. Background Information3 2.1. Objectives3 2.2. Microenvironment3 2.3. Industry performance3 2.4. Products and services4 2.5. Life cycle stage4 2.6. Types of funds5 3. Superannuation Fund Industry (SFI)6 3.1. Appointing fund and company-allocation6 3.2. Company: investment options6 4. Performance and Fund Comparison7 4.1. Performance7 4.2. Fund comparison9 5. Conclusion10 6. References11 Introduction 1.1 Purpose The purpose of this report is to analyse the superannuation fund industry and how hypothetical fund of $100,000 will be allocated to a specific superannuation company. 1.2 Background Information…show more content…
2.2 Microenvironment – Competitors For a company to be successful, they “must provide a greater customer value and satisfaction compared to their competitors” (Kotler, Burton, Deans, Brown, & Armstrong, 2013, p.118). AustralianSuper is the top player in the SFI (4.8% market share), followed by Commonwealth Bank of Australian, AMP Limited and others. However, barriers to entry and competition are high between the different companies in this industry due to the minimal differences between products offered (Wu, 2016). Figure 1: This image depicts the major players in the Superannuation industry (Wu, 2016). 2.3 Industry Performance Over the last five years, industry revenue has moved largely in line with share market performance, given the significance of investment income in the industry (BNP Paribas, 2015). According IBIS World’s Superannuation Industry report, industry revenue is forecasted to grow at an annualized rate of 3.6% over the five years through 2015-16 (with a current year decline of 6.4%) to reach $259.4 billion (Wu, 2016). 2.4 Products and Services According to IBIS World Industry Report K6330 titled Superannuation Funds in Australia dated April 2016, Small funds make up 30.1% of the industry, retail funds are about 27.3%, industry funds about 22.1%, public sector funds

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