Offshore distribution set to rise
Offshore distribution by Australian asset manager is set to rise on the back of easier global distribution vehicle access, according to a financial services group.
Of $2.5 trillion in assets under management in Australia at the end of December 2014, three per cent ($90 billion) were on behalf of non-residents by Australian fund managers, BNP Paribas Securities Services said.
BNP Paribas chief administrative officer, Daryl Crich, said because the Undertakings for Collective Investment in Transferable Securities (UCITS) was no longer only providing access to Europe it would help increase offshore distribution.
"It is now a truly global distribution vehicle. It can also be used for distribution in Latin America, the Middle East, and Asia Pacific," he said.
"It already has wide appeal among Chinese and Asian fund managers as a global vehicle for cross-border investment funds. As such, UCITS can provide access to China and its fund management industry, which is estimated to triple in size to US$1.1 trillion this year."
However, Crich warned that asset owners and managers would need to take note of specific regulations of each jurisdiction.
"Regulations here and overseas are complicated and continually increasing. New frameworks such as UCITS V and the Alternative Investment Fund Managers Directive mean distributors have to comply with more stringent rules."
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
