Hedge fund sector to push past $100 billion
The Australian hedge fund sector will pass the $100 billion mark driven by Treasury reforms, financial innovation and growing demand according to the global hedge fund industry association.
The Alternative Investment Management Association (AIMA) said the Australian hedge fund sector was currently at $96.9 billion in assets off the back of strong growth that resulted in assets increase by more than 45 per cent from 2012 to 2014.
At the same time data released by the Australian Securities and Investments Commission showed during 2014 the largest hedge funds in Australia reported average returns of 15.6 per cent.
AIMA Australia, Chair, Paul Chadwick said the current subdued equity and debt markets would drive further growth of hedge funds as would newer strategies which would increase the number and types of hedge fund strategies available to investors.
AIMA, chief executive, Jack Inglis said the passing of the Investment Manager Regime (IMR) legislation earlier this year had led to a number of international hedge fund management firms looking at setting up operations in Australia with the IMR creating certainty around those operations.
AUTHOR
Jason Spits
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