Our Market
The Australian Institutional Market is one of sophistication and integrity. With over A$3.4 trillion under management (31 December 2022, APRA) and already the 4th largest global pool of pension funds, it is forecast to double in size during the next 5 years from compulsory salary contributions (currently 10.5% and increasing by 0.5% on 1st July 2023, 2024 and 2025 to 12%). Most of the money is in accumulation phase.
It is essential that international fund managers understand the following key influences on Australian market:
- Asset Consultants have significant involvement in their clients’ selection of investment strategies and managers;
- Investors take time to build relationships with new managers of interest & want access to key investment team decision-makers;
- Focus on Costs leads to downward pressure on fees driven by regulatory change & competition;
- Alignment of Interest with managers; &
- Peer Group Risk.
In order to successfully position and fund raise in Australia, it is critical to understand:
- who really is the key influencer in the investment decision making process for each fund?
- the strategies and structures that investors prefer?