Australia’s funds management industry is the largest in the Asian region

13 Apr 2017

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  • Edmund Tang

Australia’s funds management industry (also referred to as “managed funds” or “investment funds”) is the largest in the Asia-Pacific region and the sixth largest in the world, according to the survey produced by Washington-based Investment Company Institute. The global significance of Australia’s financial markets and sophistication of its managed funds industry (see chart below) reflects the country’s strengths in having the world’s:

  • fourth largest alternative assets under management (US$275 billion)

  • sixth largest managed fund assets under management (US$1.6 trillion)

  • eighth largest foreign exchange market (US$121 billion daily average turnover)

  • ninth largest stock market measured by free-float market capitalisation (US1$ trillion)

  • ninth largest high-net-worth market (US$735 billion)

  • tenth largest market for international and domestic debt securities combined (US$2 trillion).

Global significance of Australia

The growth and strength of Australia’s managed funds industry has been underpinned by:

  • a sophisticated investor base

  • mature, large and rapidly expanding financial markets

  • soundness of banks and an efficient financial system

  • a strong presence of leading global financial institutions

  • the development of cutting-edge investment products

  • a world-class regulatory environment

  • a universal and mandatory retirement income (superannuation) system

  • a resilient economy and a well-educated, multilingual and productive labour force.

For more detail refer to our Managed Funds 2017 Update.