Global Funds Eye Australia’s $1.8 Trillion Pension Pool
More global fund managers are setting up shop in Australia, drawn to the nation’s A$2.3 trillion ($1.8 trillion) pension savings pool and new local investment opportunities.
THL Credit Inc., an alternative credit manager based in Boston, said in September that it hired a director in Australia. New York-based credit hedge fund GoldenTree Asset Management opened an office in Sydney last month after appointing a local managing director. Oaktree Capital Management, which already manages Australian pension money, headed Down Under last year as it also sought local investments.
The developments are part of a broader global trend as low interest rates in North America, Europe and Asia prompt money managers to increasingly seek assets they had previously seen as too risky. There are also uniquely Australian factors. The world’s fourth-largest pension pool is swelling due to mandatory retirement saving rules. Many Aussie funds have little choice but to seek overseas investments as well as alternative assets as they outgrow local equity and corporate bond markets.
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