Sat, Apr 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Report claims Australia’s superannuation strength offers model for Asian fund management industry

Monday, April 16, 2012

Beverly Chandler, Opalesque London: New research from Cerulli Associates finds that the Australian model of encouraging superannuation or the building of pension funds under management has led to a strong and successful fund management industry.

Currently Australia enjoys some US$1.81 trillion under management in their funds industry and Cerulli believes, the country offers a lesson for Asia’s asset management industries that they could moderate their learning curve by observing how Australia built a thriving sector supported by a large pensions industry.

In their latest report The Cerulli Edge: Asia-Pacific Edition, 2Q 2012 issue, the firm says that the key to the success of Australia's fund management industry is the superannuation (what pension funds are called in Australia), which account for 70% of total industry assets.

"The super had $1.28 trillion (A$1.26 trillion) in assets as of December 2011, from a population of just 22 million which is about the size of Beijing" Cerulli says. Their findings included the fact that mandatory contributions are indispensable to building a flourishing pension fund sector. "In Australia, the "super guarantee" has been in place since 1992 and today employers must contribute 9% of an employee's salary. This will be raised gradually, likely to 12% by 2020. As a result, super assets are forecast to grow exponentiall......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably