Australia a funds management conduit for Asia-Pacific
Australia appears to be already acting as a funds management hub for investors in the Asia Pacific, according to new research released by the Financial Services Council (FSC).
The research revealed 73 per cent of the $32.1 billion managed by Australian-based fund managers on behalf of overseas investors originates in the Asia Pacific. However it also reveals the most popular investment type for that money is international equities.
"In other words, after flowing into Australia there is a counter-flow which takes monies back overseas," the Plan for Life analysis of the research said.
It said that investment in overseas shares accounted for 26.5 per cent of flows, with overseas property trusts accounting for 22.5 per cent and Australian fixed interest 21.8 per cent.
The Plan for Life analysis said that Australian domestic equities accounted for just 14.7 per cent of flows.
Releasing the research this week, FSC chief executive John Brogden said the findings were significant and demonstrated the importance of proceeding with the recommendations outlined by the Johnson Review.
Brogden pointed to the advantages of introducing an Investment Manager Regime and Collective Investment Vehicle Regime and the establishment of an Asia Funds Passport.
AUTHOR
Mike Taylor
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