Australia creeps up managed fund ranks

Australia has overtaken Italy when measured by total managed fund assets, putting it in fourth place worldwide behind the United States, France and Luxembourg.

TheInvestment and Financial Services Association’s (IFSA) international survey of investment funds for the June quarter 2003 shows Australia now controls 3.5 per cent of worldwide fund assets.

IFSA chief executive Richard Gilbert says Australia is ahead of countries such as Japan, Hong Kong, Brazil, Canada, Germany and the UK making it the largest base for funds management in the Asian time zone.

"Australian mutual funds under management increased by a total of 14.92 per cent in $US dollar terms over the June quarter,” Gilbert says.

“After two of the toughest years on record, this means we are finally making compensatory growth,” he says.

Gilbert says the fact Australia has overtaken Italy to claim fourth place worldwide is testament to the strength of its recovery in equity markets and the resurgence of its dollar.

The survey showed movement in worldwide mutual fund net assets over the quarter was up 10.3 per cent on the March quarter, with net assets increasing by $US1.16 trillion to $US12.36 trillion.

IFSA says this was largely due to worldwide equity markets increasing by 15.22 per cent over the quarter, as measured by the MSCI World Index.

At present, the United States has $US6,815,613 million in fund assets, France has $US993,463 million, and Luxembourg has $US912,738 million.

Australia’s $US433.6 billion in fund assets is ahead of Italy’s $US432.27 billion.