The Australian Investment Managers Cross-Border Flows report released yesterday revealed that the Asia Pacific region was by far the biggest contributor of foreign fund flows via managed investment trusts.
“From 1 January 2010 to 31 December 2011, investment in Australia via MITs grew by 54 per cent from $21.89 billion to $33.60 billion,” the report said.
“During this period, investment from the Asia Pacific region accounted for 68 per cent of fund flows with $14.75 billion in funds invested at January 2010 and $19.44 billion at 31 December 2011.”
In Australian dollar terms, funds from the Asia Pacific region had the largest increase over the study period, up by 33 per cent at $4.7 billion.
Europe was found to be the second largest contributor, accounting for 13.2 per cent of total fund flows, followed by the United Kingdom at 9.1 per cent.
FSC chief executive John Brogden said the Cross-Border Flows report demonstrated that where the government had taken action to increase the competitiveness of taxation policy applied to Australian domiciled funds, fund flows had substantially increased.
“Funds sourced from overseas, especially the Asia Pacific region, have the potential to increase exponentially if the right policy settings are in place,” Mr Brogden said.
“It is therefore critical that the Australian government continues to press ahead with the remaining recommendations of the Johnson Report.”
The Trust Company chief executive John Atkin said the findings were overwhelmingly positive for Australia, with a significant increase in overseas funds into the country over the two-year study period.
“As a leading trustee operating in Australia, New Zealand and Singapore, we know that small policy changes can have a big impact on this flow and Australia needs to stay ahead of the game,” Mr Atkin said.
