Australia: land of opportunity

Thu Jun 3, 2010

Assets in hedge funds in Australia have grown from $1.6 billion to $57 billion in 10 years. InvestHedge explores what is going on in Australia and discovers that it is a market worth looking at

By Pirkko Juntunen

The Australian pension fund industry mirrors the country in its uniqueness. Australian pension funds, known as superannuation funds (super funds for short) have an asset pool of US$1.1 trillion, or the equivalent of 90% of GDP, in 2010. This number is estimated to reach some $1.8 trillion by 2015 and by 2025 make up 120% of GDP, making it a growth market for asset management. As investors look to diversify, this represents an attractive pool of potential funds for alternative investments and hedge funds in particular.

Australia is one of the few countries in the world with a compulsory contribution system. Known as the Superannuation Guarantee (SG), it currently requires employers to make a contribution on behalf of their employees of 9% of salary - which may soon be increased to 12%.

The Australian government recently conducted a broad tax review, including a review of...

ISSN: 2151-1845 / CDC10004H

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