Erskine, Alex --- "Hedge Funds, Private Equity and Alternative Investment in Australia" [2012] ELECD 251; in Athanassiou, Phoebus (ed), "Research Handbook on Hedge Funds, Private Equity and Alternative Investments" (Edward Elgar Publishing, 2012)

Book Title: Research Handbook on Hedge Funds, Private Equity and Alternative Investments

Editor(s): Athanassiou, Phoebus

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849802789

Section: Chapter 16

Section Title: Hedge Funds, Private Equity and Alternative Investment in Australia

Author(s): Erskine, Alex

Number of pages: 36

Extract:

16. Hedge funds, private equity and
alternative investment in Australia
Alex Erskine*


INTRODUCTION

The Australian managed funds industry held AU$1.7 trillion (US$1.69 tril-
lion) in assets and was ranked the fourth largest in the world and largest in
the Asia Pacific region in December 2009.1,2 The managed funds industry
has grown by a compound annual growth rate of 11.9 per cent since 1992.
The industry's funds under management (FUM) have nearly doubled
since 2003.3
A number of factors have driven the growth of the Australian managed
investment industry in general and the alternative investment sector in
particular. Firstly, the Government introduced compulsory superannua-
tion4 (retirement) savings in the early 1990s. That resulted in a substantial
growth in superannuation accounts (see Figure 16.1). Some superannua-
tion monies were in turn invested in the alternative investments industries,
facilitating growth and the achievement of economies of scale and scope.


* Alex Erskine is Chief Economist, Australian Securities & Investments
Commission. Also contributing were Jeremy Bray, Li-Ling Chew, Ben Durnford,
Dr. Pamela Hanrahan, Paulo Pinto, Trinh Quach, Dr. Shane Worner, Grantly
Brown, Marie-Christine DeGreeff, and Geoff McCarthy. This chapter contains
personal views which do not necessarily represent the view or policies of the
Australian Securities & Investments Commission or its Commissioners. The con-
tents of this chapter were finalized on 19 January 2011.
1
Australian Trade Commission (2010), Investment Management Industry in
Australia, Canberra, Australia.
2
Exchange rate of AU$ 5 US$99.96 as ...