Industry revenue, composed primarily of capital gains on trusted assets, exhibited volatile growth over the five years to 2017. Despite the volatility, positive trends in financial and real estate markets have driven growth over the five-year period. Industry revenue is composed of income generated by the trusts and estates themselves, which includes interest payments, dividends, rental payments, royalties and capital gains. In addition to the performance of the underlying assets, the actual number of trusts and estates plays a crucial role in revenue change. As a result, household wealth and the age of the population can affect industry performance. Over the next five years, the aging population and growing number of wealthy households are anticipated to increase industry assets. Moreover, both the S&P 500 and MSCI World Index are expected to exhibit growth, although this will be subject to volatility. Additionally, the house price index is forecast to grow. Despite this, potential tax changes could inhibit growth if they act as disincentives to establishing trusts. As a result of these trends, industry revenue is forecast to grow.
This industry includes personal trusts, estates and agency accounts that are managed on behalf of beneficiaries under terms of a trust agreement, will or agency agreement. Industry revenue is defined as the income generated by the assets in the entity. This may be in the form of interest, dividends and other investment income. Income may be held by the entity or distributed to beneficiaries. Fees for estate planning or drafting wills are not included in this industry’s revenue.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.