Australia’s funds management industry is the largest in the Asian region
13 Apr 2017
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).
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.