FSC urges Investment Manager Regime completion
The potential export market for Australian financial services generating revenue from the management of overseas funds could inject as much as $700 million into the Australian economy each year, according to the Financial Services Council (FSC).
The 2013 FSC-Trust Company Australian Investment Managers Cross-Border Flows Report, shows investment fund flows into Australian Managed Investment Trusts from offshore have increased 78 per cent since January 2010.
It said these funds flows generate fees, profit, employment and tax revenue for Australia demonstrating the substantial and growing export potential of the funds management industry.
The report said the Asia Pacific region continues to be the biggest source of investment into Australian managed funds with Australian funds management expertise being widely recognised across the region. The report highlights the significant potential of Asia as a source of foreign fund flows, currently accounting for 66 per cent of all fund flows, followed by Europe and the United Kingdom at 24 per cent.
FSC Chief Executive John Brogden said "It is clear the Asia Pacific region holds large, untapped opportunities for the Australian financial services industry, with phenomenal potential for Asia to quickly increase its overall share of funds management activity. Australia needs to ensure it is positioned to capitalise on this".
"Asia has 60 per cent of the world's population, it has 12 per cent of the world-wide FUM market. In comparison, the US has 12 per cent of the world's population and has 57 per cent of FUM. While long term demographic trends favour further Asian investment into Australian funds, Brogden said.
He said that for this reason, the finalisation of the Investment Manager Regime and the Johnson Report recommendations were required for further growth.
"The government has shown its commitment to the region with the signing of intent of agreement for the Asia Region Funds Passport in September. It is time to focus on completing the Johnson Report recommendations as a priority," Brogden said.
Recommended for you
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
Fidelity International has worked in tandem with Australian wealth manager Emanuel Whybourne & Loehr to launch an actively managed global equities strategy aimed at financial advisers.
