Fund managers consider Australian ops

A recent survey of fund managers in London, New York and San Francisco by law firm Henry Davis York (HDY) found some 59% are giving Australia serious thought, while 36% were unsure.

The surveys took place during a series of conferences called Opportunity Australia, meant to promote Australia as a financial centre.

HDY funds management partner Liz Gray said the 36% figure was higher than she would have expected. Gray conducted the survey with funds management partner Nikki Bentley.

Bentley said: "The size and anticipated growth of Australia's investment pool will continue to be a key incentive to foreign fund managers to enter this market. However, we still have a lot of work to do in raising the offshore profile of Australia's funds management industry."

She added: "We believe the proposal to develop and promote an Australian 'national brand' would be an effective way to inform the international market of the comparative strengths of our industry."

UK and US asset managers said the major barriers to conducting business in Australia were distance, business costs and tax systems and rates.

Gray said: "Australia clearly needs a competitive tax system to enable it to develop as a financial services hub. We anticipate this will be identified in the Australian Financial Centre Forum's report due shortly."

The Forum was established by the Australian government in 2008 in order find ways to position the country as an international financial centre.