As we have heard, the funds management industry in Australia has expanded at a remarkable pace over the past couple of decades. Since 1990, the value of funds under management has grown at an annualised rate of 12½ per cent, and now stands at around $ trillion.
This is equivalent to about 160 per cent of GDP, up from about 50 per cent in 1990. By international standards, Australia’s funds management industry is among the largest in the world, not only as a ratio to GDP but also in absolute terms. Some reports rank Australia as the fourth largest funds management industry in the world in terms of assets under management.