The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Aussie funds pool to hit $1.32 trillion

Australia's mutual fund industry is set for a bonanza over the next decade, with assets under management forecast to reach a total of US$1.32 trillion by 2015.

Latest figures from the Reserve Bank of Australia show the country has leapfrogged Italy to become the world's fourth-largest mutual fund asset pool, with US$433.6 billion under management. The research has been compiled by the Investment Company Institute on behalf of the International Investment Funds Association.

The business opportunity provided by this rapid growth has been spotted by foreign investment houses. T Rowe Price is moving into Australia through a joint venture with the Challenger Financial Services Group, and Allianz Dresdner Asset Management has also announced expansion plans to build its presence in Australia. Foreign fund managers increasingly see Australia as the hub of their Asia-Pacific operations, as Credit Suisse Asset Management showed when it made Sydney its Asian hub two years ago.

ucits.gif
More to come Further joint ventures with overseas firms are expected. "I expect these relationships to be a feature of the landscape," says Richard Gilbert, CEO of the Investment and Financial Services Association.

Industry players in Australia attribute the growth in mutual fund assets to the stability of the country's equity market, the strength of the Australian dollar and the compulsory retirement savings system.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree