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As mentioned, iFAST has been in the market earlier, and also longer, than competitors such as Phillips.
The market has also been growing over the past decade. So iFAST (and its B2B clients) has not only been getting more customers, but those customers's income have also grown, which means more money to invest.
So for the company's AUA to continue growing as it had, it either has to capture more of the market, or at least maintain its share in a growing market.
I think it is quite certain that the market will continue to grow. The belief of continue income/wealth growth in Asia is why banks based in Singapore have been very aggressive in expanding their wealth management units (through both expansion and acquisition) over the past 10 years.
What is not obvious is how much growth iFAST can capture, and how much it can earn from it.
As also previously mentioned, Phillips is not the only competitor to iFAST. There are now plenty of low-cost investment platforms which provide access to a diversity of funds or diversified portfolios which compete with them for B2C customers. For customers that do not like to DIY, and instead rely on advisors, iFAST's B2B clients are competing with other IFAs/EAMs, or bank wealth management units.
Singapore's wealth management market is about $3,000b. And iFAST's AUA is about $10b, or 0.33% of that. You can be an optimist and say that it means iFAST has huge opportunities to grow.
But you also have to consider why the other $2,990b is not captured by iFAST. Who is managing these money? What competitive advantage could they have? And under what conditions will the owners of these money will move them to iFAST, or their B2B clients?
The market has also been growing over the past decade. So iFAST (and its B2B clients) has not only been getting more customers, but those customers's income have also grown, which means more money to invest.
So for the company's AUA to continue growing as it had, it either has to capture more of the market, or at least maintain its share in a growing market.
I think it is quite certain that the market will continue to grow. The belief of continue income/wealth growth in Asia is why banks based in Singapore have been very aggressive in expanding their wealth management units (through both expansion and acquisition) over the past 10 years.
What is not obvious is how much growth iFAST can capture, and how much it can earn from it.
As also previously mentioned, Phillips is not the only competitor to iFAST. There are now plenty of low-cost investment platforms which provide access to a diversity of funds or diversified portfolios which compete with them for B2C customers. For customers that do not like to DIY, and instead rely on advisors, iFAST's B2B clients are competing with other IFAs/EAMs, or bank wealth management units.
Singapore's wealth management market is about $3,000b. And iFAST's AUA is about $10b, or 0.33% of that. You can be an optimist and say that it means iFAST has huge opportunities to grow.
But you also have to consider why the other $2,990b is not captured by iFAST. Who is managing these money? What competitive advantage could they have? And under what conditions will the owners of these money will move them to iFAST, or their B2B clients?