4th July 2007
Australia one of the world’s top 20 largest economies
Australia ranks in the world’s top 20 largest economies, entering into our sixteenth year of economic expansion. This is partly due to Australia having developed a sophisticated and growing funds management industry. At $1trillion, our funds management industry is the largest in the Asian Pacific region and fourth largest in the world.
Australia also leads the world in terms of funds under management per person which is currently A$50,000.00 (surpassing the United States by 20 per cent). This reflects an increase of around 115% over the last five years alone.
Funds management is a bigger contributor to the Australian economy than agriculture, utilities (electricity, gas and water) and communications.
The main driver for this leadership performance has been compulsory superannuation, which was introduced in the 1980s. However the strengths of the industry now include an increasingly sophisticated investor base, innovative investment products and strong regulatory bodies operating within a well respected framework.
The Australian Bureau of Statistics (ABS) advises that growth is led by fund managers in cash management, public unit trusts and superannuation, taking interest away from life offices, common funds and friendly societies. The types of assets that have experienced growth are overseas assets (averaging 19.3% per annum), equities and unit trusts (15.7%). Mortgage Funds have roughly $20billion invested across Australia.
Funds Management is a commercial enterprise that manages investors’ money for a fee. When the fund is a managed investment scheme, the fund manager is usually the Responsible Entity*.
Fund managers can invest in everything from shares, bonds, mortgage portfolios or real estate to commodities, such as oil, wheat or aluminum. Different clients are prepared to tolerate different amounts of risk, so fund managers usually run several funds or investment options. Some offer fast growth and high risks; others offer slower growth and lower risks.
La Trobe is the Responsible Entity for the La Trobe Australian Mortgage Fund. La Trobe is a specialist manager of retail and institutional mortgage investments. The managed investment options currently offered by the La Trobe Fund are: 1. Cash & Mortgages Option (Indicative Risk Level – Low), 2. Pooled Mortgages Option (Low-Medium), 3. Select Mortgages Option (Medium) and 4. Special Situation Mortgages (Medium-High). Funds Under Management from retail investors currently exceed $389 million**. The broader La Trobe enterprise manages over $1.3billion.
*An ASIC licensed entity or body that operates a managed investment scheme.
**As at 31 May 2007
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Head of Funds Management
t +61 3 8610 2811
Chris Andrews is the Head of Funds Management for the La Trobe Group and has responsibility for the La Trobe Australian Mortgage Fund.
Read full profile here.
La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 115 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.
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