Apparently, Australia risks being left behind in the race to attract overseas investors due to the twin evils of regulation and taxation according to this piece in the AFR. Whether it is or it isn’t I don’t really care. However the article did have the following staggering claim.
“We have world-class fund managers thanks to the super system, competitive fees and bipartisan political agreement that we should leverage to manage overseas capital,” said Blake Briggs, the FSC’s chief executive. “And obviously the Australian economy would benefit from the CCIVs, but we’ve moved at a glacial pace.”
This really is a tell us you know nothing about the local funds management business without telling you know nothing about the local funds management business. A quick glance at SPIVA’s annual scorecard of local active funds offers the following telling graphic.
Over the long term over 80% of all fund managers fail to beat the S&P/ASX200 index.
I could be charitable and say that by world class he meant just as bad as fund managers in other jurisdictions because when you look at their data it is practically identical to the performance of our local fund managers.