Investment in Australia via managed investment trusts (MITs) grew by 54% from $21.89bn to $33.60bn during the period 1 January 2010 to 31 December 2011, according to the Australian Investment Managers Cross-Border Flows Report released by the Financial Services Council (FSC) today [Tue 13.11.2012]. During this period, the report found that investment from the Asia Pacific Region accounted for 68% of fund flows, with $14.75bn in funds invested at January 2010 and $19.44bn at 31 December 2011.
The 2-year study was commissioned by the FSC and The Trust Company to determine whether overseas sourced funds flowing into Australia increased following the MIT tax changes made by the Government in July 2010 in response to the Johnson Report. John Brogden, CEO of the FSC, said the Cross Border Flows Report shows that where the Government has taken action to increase the competitiveness of taxation policy applied to Australian domiciled funds, fund flows have substantially increased. It is therefore critical that the Government continues to press ahead with the remaining recommendations of the Johnson Report, Mr Brogden said. CEO of the Trust Company, John Atkin, added that completing the implementation of the Johnson Report will enhance the ability of the financial services sector to expand through closer engagement with international capital markets in the Asian region.
Source: FSC media release, 13 November 2012
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