Assets managed by 18 of Australia's largest investment managers increased significantly relative to global peers last year, according to a study by Towers Watson.
Total assets of the 18 Australian managers included in the Global Top 500 grew by 49 per cent to US$847 billion in 2010 from US$568 billion in 2009.
For the first time since the global financial crisis (GFC), total assets of Australian managers in the top 500 list surpassed pre-GFC levels of US$691 billion set in 2007.
In comparison, assets managed by the world's largest 500 fund managers rose by more than 4 per cent in US dollar terms in 2010 to around US$65 trillion, continuing a trend from 2009 when assets rose 16 per cent on the prior year.
The growth in Australia was mostly driven by market and organic growth, but was also boosted by merger and acquisition activity and the Australian dollar, which appreciated around 14 per cent against the US dollar, Towers Watson said.
"The strong performance by Australian fund managers and the strength of the Australian dollar has meant that all managers who were on last year's list have moved up the rankings," Towers Watson Australia head of manager research Hugh Dougherty said.
Australia also had three new entrants, which helped the increase in overall assets under management.
Macquarie is the largest Australian manager, ranked 69, up from 116 in 2008.
The firm's increase in ranking was partly due to its acquisition of US manager Delaware during the year, the report said.
Other Australian managers included in the list are Commonwealth Bank Group, ranked 92, AMP, ranked 125, National Australia Bank, ranked 148, Queensland Investment Corporation, ranked 170, Westpac, ranked 199, and Industry Funds Management, ranked 257.
Challenger Financial was also on the list with a 266 ranking, with Perennial Investment, ranked 290, Platinum Asset Management, ranked 316, Maple-Brown Abbott, ranked 369, Insurance Australia Group, ranked 379, and Charter Hall Group, ranked 396.
Balanced Equity Management was also on the list at 401, with Lend Lease, ranked 409, Northcape Capital, ranked 475, JCP Investment Partners, ranked 481, and Paradice Investment, ranked 482.
"2010 was another good year for most asset managers, with the majority posting strong results," Dougherty said.
"However, developments in the second half of 2011 are an important reminder of the fragility and volatility of markets and reflect the weak underlying economic fundamentals and the changing risk appetites among institutional investors."
