Australia has ne f the largest and fastest grwing investment management sectrs in the Asia Pacific Regin. 1 Furthermre, it s predicted t grw t ver $3 trillin in funds under management by 2030. 2 Its grwth is underpinned by Australia s gvernment-mandated retirement savings scheme (superannuatin), which will increase prgressively frm 9 per cent t 12 per cent f salary by 2019-2020. Its size and sphisticatin reflects the cuntry s strengths in having the Asia Pacific Regin s: largest pensin fund industry (ex-japan); largest stck market (ex-japan) measured by free-flat market capitalisatin; largest market fr internatinal debt securities; fastest grwing freign exchange market; and third largest high-net-wrth market after Japan and China. 3 But superannuatin isn t the nly driving factr behind this grwing financial market. The Australian investment management industry als cnsists f: a hedge fund sectr that is ne f the largest in Asia, and which has 80 per cent f its assets deplyed in glbal and reginal markets; the regin s largest real estate investment trust (REIT) markets (and ne f the first); ne f the largest exchange traded investment funds markets in the Asia Pacific; grwing envirnmental, scial gvernance (ESG) and Infrastructure funds sectrs; 4 6.7 millin peple, r 38 percent f the adult Australian ppulatin participate either directly, r indirectly in the lcal share market 5, making ur lcal exchange the 14th largest in the Wrld by market capitalisatin. 6 SOURCES OF FUND INVESTMENT IN AUSTRALIA FROM OVERSEAS (DECEMBER 2013) 10 Asia Pacific 55% Eurpe 11% Middle East 6% UK 7.2% USA.8% 55% AT 55% ASIA PACIFIC IS THE LARGEST CONTRIBUTOR OF FUNDS Rest 11% This dcument is nly intended t be a summary f the highlights f the cver available. We encurage yu t read the full Plicy wrding fr a full descriptin f the terms and cnditins. This Plicy Summary des nt frm part f the plicy terms and cnditins. SYDNEY MELBOURNE PERTH BRISBANE Tel: 1300 769 772 www.dualaustralia.cm.au DUAL Australia Pty Limited Part f the DUAL Internatinal Grup Registered in Australia under ABN N. 16 107 553 257
GLOBAL SIGNIFICANCE OF AUSTRALIA S INVESTMENT FUND ASSETS POOL 9 Investment fund assets, US$ billin, June quarter, 2014 ASIAN REGION 41 66 127 309 561 New Taiwan India Suth Zealand Krea 825 1,453 1,686 China Japan Singapre Hng Kng Largest in Asian Regin Australia Australia s Ttal Funds Under Management: A$2.4 Trillin AUSTRALIA 1,456 1,788 2 157 235 342 2000 700 2005 2010 Current Value 825 1,030 1,137 1,252 1990 1,453 1995 1,580 1,559 1,686 3rd Largest in the Wrld 3,313 15,665 Japan Canada Brazil UK Singapre Ireland France Hng Kng Australia Luxemburg USA GLOBAL And nt nly is Australia s investment management industry ne f the largest in the regin, its als ne f the largest in the Wrld, with nly the USA and France having larger ttal pls f funds under management. 7 That s right, we have the third largest investment management industry in the Wrld! The sphisticatin f the Australian investment management industry is the key t attracting investment frm verseas. 8 Frm humble beginnings, Australia is nw at the frefrnt f the glbal investment management industry. DUAL Australia recgnises the unique risks faced by investment managers in tday's cmplex and demanding regulatry envirnment. Our specialist expertise in this industry allws us t ffer bespke slutins, which can be tailred t a plicyhlder s unique risk prfile. DUAL Australia s investment managers Insurance has been specifically designed fr the needs f Australian Investment Management firms. It cmbines multiple cverage sectins int ne easy t transact plicy frm, prviding cnvenience and peace f mind t investment management prfessinals. Backed by Llyd s security, DUAL Australia s Investment Managers Insurance Plicy prvides a brad frm cver fr Australian investment managers. GLOBAL PENSION ASSETS 2014 11 RANK COUNTRY TOTAL ASSETS 2013 (US$ BN) % GDP US$ BN 10-YEAR CAGR 1 US 18,878 113% 6.6% 2 UK 3,263 131% 10.0% 3 Japan 3,236 65% 1.1% 4 Australia 1,565 105% 14.0% 5 Canada 1,451 80% 8.6% 6 Netherlands 1,359 170% 8.3% 7 Switzerland 786 122% 8.3% 8 Germany 509 14% 8.3% 9 Brazil 284 13% 13.1% 10 Suth Africa 236 67% 9.0% 11 France 169 6% 2.0% 12 Ireland 130 59% 7.4% 13 Hng Kng 114 41% 12.1% Ttal 31,980 83% 6.7%
Llyd's ratings A+ (Strng) Standard & Prs AA- (Very Strng) Fitch Ratings A (Excellent) A.M. Best Key Plicy Benefits General benefits New fund and new subsidiary cver Waiver f ur rights under sectin 28(3) Standardised frm Cmmn definitins Easy t transact Prfessinal Indemnity Full civil liability wrding Reinstatement f the indemnity limit fr claims by retail clients Vicarius liability cver fr authrised representatives and agents Breach f privacy cver Cver under cnsumer prtectin legislatin Defamatin cver Frmer subsidiary and fund cver Key man lss Intellectual prperty cver Panel cunsel clause Public relatins expenses cver INVESTMENT MANAGERS Directrs & Officers Liability Traditinal Side A, B and C Directrs chice f defence cunsel Emplyment Practices Liability cver fr insured persns Crisis csts Additinal limit fr nn-executive directrs Deprivatin f asset expenses Extraditin csts Outside entity cver Bail bnd expenses Public relatins expenses Wrk health & safety csts Insured persn tax liability Pllutin defence csts and investigatin csts Preservatin f right t indemnity language Reinstatement f the indemnity limit fr nn-executive directrs Trustee liability cver fr single emplyer superannuatin fund Unincrprated jint venture cver N cnsensual claim exclusin N inslvency exclusin N insured vs insured exclusin Emplyment Practices Liability Cver fr Emplyment related Investigatins Public relatins Expenses Insurer duty t defend language
Crime Prtectin Including internal and external frauds Access t a dedicated Whistleblwer Htline Cntractual penalties resulting frm an internal r external crime Chice f lss investigatr Cmputer crime csts Extrtin csts Errneus transfer f mney r securities Future lss preventin csts Lss f client funds held n trust Lss f Interest Incme Cver fr the lss f cryptcurrencies (including Bitcin) Cver fr Alternative Investment Fund under EU Directive 2011/61/EU (AIFs) Statutry Liability & Supplementary Legal Expenses Autmatic run-ff fr retired insured persns Crisis csts Insured persn tax liability Pllutin defence csts and investigatin csts Prsecutin csts Autmatic unincrprated jint venture cver Additinal Benefits Available n a primary r excess basis Apprpriate fr Retail AFSL hlders Lcal underwriters with authrity t make decisins Ability t tailr bespke slutins fr cmplex risks Lcal claims handlers with expert knwledge Glbal reach thrughut admitted jurisdictins Llyd s capacity Brad appetite Actual cverage may differ frm accunt t accunt depending n ptins purchased The evlving landscape facing Australian businesses There are ver 700 laws that can impse persnal liability n a Directr 17,000 unfair dismissal claims every year prcessed by the Fair Wrk Cmmissin Ever increasing regulatry burden n businesses - Intrductin f Fair Wrk Act - Privacy Act amendments - Harmnisatin f the Wrkplace Health & Safety legislatin - Changes t the Anti-mney laundering and Cunter terrrism Financing Act - New Anti-bullying legislatin - Anti-Bribery & Crruptin measures in the Australian Criminal Cde Increased Ecnmic & Trade Sanctins Cntinuus disclsure bligatins Vlatile market cnditins Glbalisatin expsing business t multiple legal jurisdictins
Ftntes 1 http://www.abs.gv.au/ausstats/abs@.nsf/mf/5655.0 2 Financial Services Cuncil, Media Release, 28 February 2013 3 Investment Management Industry in Australia, by Austrade, (fr mre infrmatin, visit: http://www.austrade.gv.au/articledcuments/2792/investment- 4 Investment Management Industry in Australia, by Austrade, (fr mre infrmatin, visit: http://www.austrade.gv.au/articledcuments/2792/investment- 5 http://www.asx.cm.au/educatin/listed-at-asx/share-wnership.htm 6 http://www.wrld-exchanges.rg/statistics/mnthly-reprts 7 Why Australia: Benchmark Reprt 2015, The Australian Trade Cmmissin, http://www.austrade.gv.au/invest/reprts-resurces/benchmark-reprt 8 2014 Australian Investment Managers Crss Brder Flws Reprt, Financial Services Cuncil and Perpetual 9 Investment Management Industry in Australia, by Austrade, (fr mre infrmatin, visit: http://www.austrade.gv.au/articledcuments/2792/investment- 10 2014 Australian Investment Managers Crss Brder Flws Reprt, Financial Services Cuncil and Perpetual 11 Surce: Twers Watsn Glbal Pensins Asset Study 2014; Austrade; http://www.twerswatsn.cm/en-au/press/2014/02/glbal-pensin-fund-assets-hitrecrd-high-in-2013