Australian managed funds world beaters
Australian managed fund balances rose by almost 14 per cent in 2006, with an average of just under $50,000, trouncing our nearest rival the United States, which grew by only 10 per cent with managed fund balances averaging just over $40,000 per individual.
The study conducted by AFG Financial Planning looks at quarterly international data, ranking the average managed fund balances of the top 10 world economies, with figures drawn from the World Bank.
According to Ross Nayler, AFG Financial Planning dealer principal, it is no accident that Australian managed funds compare so well across the international spectrum.
“Australia’s world-beating performance has come about by design rather than by accident. Government, the financial services industry and ordinary Australian investors have all pulled together to make this happen,” he said.
He singled out a number of factors that have positively influenced the situation in Australia, including the mandatory 9 per cent superannuation contribution, innovative margin lending and wrap platform products and the normalising relationship between interest rates and taxation.
“Investors continue to look at managed funds as an adjunct to direct property and shares,” Nayler said.
Also rounding out the upper echelon of managed fund growth over 12 months were the United Kingdom (33 per cent), Sweden (22 per cent), and France (15.9 per cent).
Over five years, the AFG FP research indicated an increase of 114 per cent in Australian managed funds per capita, the third highest growth after Sweden (181 per cent) and Spain (115 per cent).
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
