2003 Media Releases

Australia’s mutual fund industry continues to grow, with recent inflows taking the value of the local industry to an estimated US$433 billion (A$662 billion) at the end of the financial year.

This was a 14.9 per cent increase in local assets (in US$ terms) over the three months to June 30, 2003, according to the latest figures from the Investment and Financial Services Association Limited (IFSA), and moves Australia into fourth place in global rankings, notes Deutsche Asset Management.

Source: Investment & Financial Services Association Limited, International Investment Funds Association and Investment Company Institute.

“Net assets in the world’s mutual funds rose 10.3 per cent, or US$1.16 trillion, to US$12.36 trillion over the June 2003 quarter,” said Richard Gilbert, chief executive officer at IFSA. “This was largely due to worldwide equity markets increasing by 15.2 per cent over the quarter, as measured by the MSCI World Index (in $US).”

Mr. Gilbert estimated the number of investment funds around the world to be 53,532 funds, with some 42 per cent of these being equity funds, 22 per cent fixed income funds, 21 per cent balanced or mixed funds with 9 per cent money market funds.

“Australian funds account for 3.5 per cent of worldwide investment fund assets.” Mr Gilbert said: “The fact that Australia has overtaken Italy to claim fourth place worldwide in total managed funds is testament to both the strength of the recovery in the Australian equity markets and a resurgent Australian dollar.”

“The local 14.9 per cent growth was stronger than the world-wide average of 10 per cent,” said Ross Youngman, chief executive officer at Deutsche Asset Management.

Mr Youngman noted: “The size of the local mutual fund industry is ahead of other countries such as Japan, Hong Kong, Brazil, Canada and even the United Kingdom.”

“Given our comparatively small population, the size and performance of the local market is impressive,” said Mr Youngman. “The relative large size and strong growth of the Australian industry has been assisted in large part by the Federal Government’s compulsory superannuation guarantee scheme.”

Mr Gilbert added: “After two of the toughest years on record means we are finally making compensatory growth. We trust that this result signals further strong positive returns for Australian investors.”

The figures are compiled by the European fund body FEFSI and the Investment Company Institute on behalf of the International Investment Funds Association, an organisation of national investment fund associations and are collected from 38 countries.

For further media information please contact:

Guy McKanna or Ainsley Gee
Corporate communications
Deutsche Asset Management
Ph: + 02 9249 9760 or 9249 9904

About the Investment & Financial Services Association Limited

IFSA is a national not-for-profit organisation which represents the retail and wholesale funds management and life insurance industry. IFSA has over 100 members who are responsible for investing approximately $630 billion on behalf of over nine million Australians.

About Deutsche Asset Management

Deutsche Asset Management is one of the world’s largest fund managers providing asset management capabilities to a variety of clients worldwide, including foundations, non-profit organisations, public and private superannuation funds, high-net-worth individuals and retail investors. Our global client base, totalling over A$1 trillion in funds under management (as at 30 June 2003) ranges from small investors in our unit and investment trusts, to large segregated portfolios. Deutsche Asset Management is one of the largest asset managers in the Asia Pacific region, managing A$65bn (as at 31 August 2003). In Australia, it manages over A$28 billion (as at 31 August 2003) on behalf of Australian domiciled clients.