The latest Financial Services Council (FSC) and Plan for Life research has confirmed and quantified the importance of the Australian funds management industry within the Asia-Pacific region.
The Australian Investment Managers Cross Border Flows report was compiled on the basis of research performed between November 2010 and July 2011.
It showed $32.1 billion of inflows came into the country across 18 managers during this period, with $23.5 billion or 73 per cent of it coming from the Asia-Pacific region.
The majority of these offshore funds (26.5 per cent) were invested in overseas shares, with overseas property trusts also proving popular, attracting 22.5 per cent of the pool.
Australian fixed interest allocations made up 21.8 per cent of the inflows, while Australian equities received 14.7 per cent of the funds.
Of the $32.1 billion, most of it ($18.6 billion) was institutional money from other fund managers.
In regard to flows overseas from Australia, 14 domestic managers sent $109.9 billion to be invested offshore.
The Asia-Pacific region proved to be the most popular destination for these funds with an allocation of $50.5 billion or 46 per cent. United States managers received the next highest allocation with a delivery of $33.7 billion.
In regard to assets classes, international shares were most popular with 55.5 per cent of the outflows being channelled in that direction.
Overseas fixed interest was the next most sought after category, attracting 35.2 per cent of the fund flows.
Commenting on the results, FSC chief executive John Brogden said it presented Australia with a great opportunity to consolidate its current position by considering the implementation of some of the Financial Centre Forum (Johnson review) recommendations.
“The strong bipartisan support for the Johnson recommendations will ensure Australia is able to capitalise on its position as a leading financial centre in the region,” Brogden said.
“The introduction of an investment manager regime and a collective investment vehicle regime would attract even greater inflows and encourage further engagement with the Asia-Pacific region and beyond.”
