Australian managed funds reach $2 trillion milestone
Funds under management in Australia have reached $2 trillion in the December quarter of 2012, according to new figures released by the Australian Bureau of Statistics (ABS).
This presents a significant milestone for the country's funds management industry which is the fourth largest in the world, said Financial Services Council (FSC) chief executive officer John Brogden.
"We have a world class superannuation system which will continue to grow and support Australians in their retirement, and fund managers who have grown Australia's pool of funds by a massive 656 per cent from $265 billion 20 years ago to today's figure of $2 trillion," Brogden said.
Financial services is the largest sector of the Australian economy, accounting for 10.5 per cent of Australia's gross domestic product (GDP), according to ABS, and directly employing more than 420,000 people. This compares to 10.3 per cent for mining and 7.6 per cent for manufacturing.
Brogden added Australia's financial services industry would continue to grow.
"The ABS data also demonstrates that our superannuation system, which is currently worth $1.47 trillion, is working and is well positioned to reach $3 trillion by 2030," Brogden said.
The FSC has called for bipartisanship from Canberra to commit to no further taxes on super to allow the system to mature.
"Constant tinkering with superannuation is a cost to the system, and ultimately to tax payers," Brogden said. "Now superannuation returns are coming back, it is critical consumer confidence and certainty are restored in superannuation."
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