Rice Warner’s Personal Investment Market Projections Report 2015 projects the assets held by Australians outside superannuation will increase from $2.242 trillion as at 30 June 2015 to $4 trillion in 2030.
In 2015, Australians held 42.6 per cent of their wealth outside superannuation in investment properties, 42.2 per cent in cash and term deposits, 13.3 per cent in shares and 1.8 per cent in fixed interest and loans.
According to Rice Warner, the vast majority of personal investments are held directly by individuals – with only 3.2 per cent held through investment products and platforms.
But the consulting firm expects a “significant movement” from directly held investments to investments held on platforms throughout the next 15 years.
“As a result, the value of personal investments held on platforms is projected to rise from $71 billion in June 2015 to $315 billion over 15 years in today’s dollars – up by more than four times,” said the report.
“Wrap platforms, including separately managed accounts and model portfolio products, will be the fast-growing personal investment segment, with its market share growing from 3.2 per cent to 7.8 per cent by June 2030.”
The move to wraps and platforms will likely be driven by their lower costs and increased efficiency, said the report.
Rice Warner also found that the ETF market will continue to grow strongly given their “ease of trading, low cost, use to diversify into markets inaccessible to individual investors, liquidity and transparency”.
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