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
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
