Australian Fund Market Overview
Australian fund market possess the highest investment quota per person in the world. The newest data showed that the total value of Australian fund is 1700 trillion AUD which is way over 1403 trillion, the total value of stock market. The annual growth rate is 11.9%.
The major motivation of the growth is Australian mandatory Superannuation plan and superannuation industry. The legislation states that every employer will have to contribute 9% of employee salary into super account which is recognized by government. The employee can also input more amount to gain tax deduction. And the original 9% regulation will slowly increase to 12% from 2019-2020. The new regulation will increase the retirement fund to 500 trillion.
Strong and stable Australian economy, world class legal environment and skilful labour market further consolidated Australian fund market. Meanwhile, delicate market and high level investment funding provided big potential to grow. This also attracted many Fund management company from oversea and push the growth and development of fund product and more working opportunity.
There are two major category for Australian fund, one is managed fund and the other one is hedge-fund.
The managed fund industry in Australia is the most developed and the biggest in Asia. The mandatory superannuation plan pushed the development of managed fund industry in Australia. According to the data from June 2012, the total investment amount in managed fund market has reach 1,886 trillion AUD.
From managed fund of single industry to multiple industry provides diversity of investment choices including: cash, real estate, fixed interest rate securities and stock from local or oversea.
Hedge-fund developed very fast in past 5 years. The total investment amount reach 32.6 trillion AUD and becoming the second largest in Asia. The controlled asset is even more than the total amount of Japan plus Singapore.
The law in Australia states the full responsibility and legal obligation of the managed fund enterprise. ASIC is the major industry regulation organization, mainly responsible for the management of investment plan and supervise weather the fund manager is following the regulation. The other industry regulation organization is AUSTRAC and ATO.