Australian institutional funds grew 26 per cent last year in U.S. dollar terms, more than double that of funds in the rest of the world which grew 11 per cent, according to consultants Towers Watson and Pensions & Investments newspaper.
Mergers among Australian superannuation funds, cash flow into the funds because of mandatory superannuation contributions and the establishment of Australia’s Future Fund have all contributed to growth of assets under management of Australian funds, says Martin Goss, senior investment consultant at Towers Watson in Melbourne.
The appreciation of the Australian dollar compared to the U.S. dollar and Euro have also boosted the value of Australian assets under management.
There are 15 Australian funds that are among the 300 biggest funds in the world. They include the Future Fund, ranked 35, Australian Super, ranked 78 and State Super, ranked 93.
The world’s 300 biggest funds manage US$12.5 trillion. Australian funds manage US$368 billion.