News & Insights

Australia has a strong economy with 28 years of uninterrupted growth - and counting. It’s also a stable democracy with mature regulatory systems and a welcoming attitude towards foreign investment. When you combine this with a property market that has relatively high yields compared to other Asia-Pacific destinations as well as generous tax breaks for professional investors you can see why demand is strong for investment in Australian commercial real estate.

The Institute of Managed Accounts Professionals (IMAP) estimates that about $60 billion is invested via managed accounts but acknowledges this may understate the true figure. Even so, IMAP estimates that growth will run at about 40 per cent a year for at least the next two years, suggesting the managed account industry will grow to more than $115 billion by 2020 . In this article we look at to understanding what’s behind this growth and why it’s becoming a more popular option with retail investors.

Over recent years the Australian Securitisation Forum (ASF) and Perpetual Corporate Trust (PCT) have collaborated on a series of joint research reports into the dynamics of the local securitisation market. This year the focus is on the perspectives and needs of Australian and New Zealand issuers.

For property investors, the rise of responsible investing and the use of ESG factors in investment decisions begs the big question – do green buildings pay?

The 2018 Australian Investment Infrastructure Report amplifies the major themes that surfaced in the 2017 version. A strong economy, sophisticated market and impressive track record make Australia an attractive infrastructure investment destination.

The Australian Securitisation Forum (ASF) and Perpetual ran a joint research report that dives into the needs and wants of the Australian based investors.

In the 2017 version of this report, Perpetual and Infrastructure Partnerships Australia (IPA) note that Australian infrastructure assets are still in demand – but that government policy plays an increasingly important part in investor decisions.

In the report, Perpetual and the Financial Services Council find that the Asia Pacific is the leading contributor of funds flowing into Australian Managed Investment Trusts. There is significant scope for Australia to capitalise on further opportunities in the region.

A recent study conducted by Perpetual has found Australian RMBS is in demand among global investors, but Australia is not capitalising on the extent of opportunity.

In this new research report, Perpetual and the IPA find demand for Australian infrastructure assets is still increasing – but supply is getting tight. What does that mean for the sector?

Investment by foreign fund managers into Australian Managed Investment Trusts has doubled over the past five years but the proportion of financial exports has remained consistent at 3.6%.

There is increasing opportunity for local investment managers to raise capital in overseas markets as global investors seek real returns in a low growth world. Perpetual’s Rupert Smoker looks at this trend.