Under the government’s new SIV scheme, individuals can apply for a provisional visa on the basis of a minimum investment in Australia of $5 million, and a permanent visa after holding complying investments for a minimum of four years. The first SIV was awarded to a Chinese toy manufacturer in early May.
The scheme aims to attract potential migrants with a demonstrated history of success in business and investment to help boost the country's economy.
BasisPoint Consulting managing director David Chin recently told InvestorDaily the SIV has already seen substantial interest from Chinese investors and is likely to attract $5 billion every year from an estimated 1,000 global SIV investors.
Credit Suisse said its research indicates the number of global millionaires could exceed 46 million by 2017, with China doubling its number to around two million by 2017.
The SIV provides foreign high net worth investors, as well as their immediate family and dependent relatives, the opportunity to work, travel and study in Australia without the applicant being required to satisfy an innovation points test or an age test, Credit Suisse stated.
Credit Suisse is now offering two discretionary investment portfolios that it says conform to the Department of Immigration’s requirements.
The SIV Fixed Income Portfolio invests in Australian federal and state government bonds and is aimed at more conservative investors focused on capital preservation and low-risk income.
The SIV Income Oriented Portfolio is 75 per cent invested in Australian federal and state government bonds and liquidity, with the remaining quarter in Australian equities.
Credit Suisse said it has also established a dedicated SIV desk, which is specifically focused on inbound enquiries and with staff who are fluent in Mandarin and Cantonese.
“The SIV is designed to contribute to the economic development of Australia by creating a business and investor-friendly environment, and we are glad to bring our expertise to the fore in this regard,” said Edward Jewell-Tait, head of Credit Suisse Private Banking Australia.
Edwin Tan, Credit Suisse vice president and head of the SIV desk, said new offerings provide access to cash flow flexibility via margin and property loans through the Credit Suisse platform, and are capable of holding all tradable currencies including the Renminbi, Hong Kong dollar, US dollar and gold.
