Significant Investor Visa (SIV) Could Bring $5 billion Annually To Australian Funds

Overseas high-net-worth investors entering Australia via the government’s Significant Investor Visa (SIV) immigration programme could bring in $5 billion annually to fund managers, according to David Chin, Managing Director of Basis Point Consulting. SIV starts 24 November 2012 and requires ultra-high-net-worth migrants to invest $5 million into ‘complying’ investments – one being ASIC regulated managed funds investing in Australian equities, property, infrastructure or fixed income. Although private equity funds are not mentioned specifically, SIV investors can invest directly into private companies.

On Basis Point’s analysis, SIV could potentially attract $5 billion annually to fund managers, which is nearly 1/6th the entire superannuation fund industry inflows in financial year 2012.

A seminar on SIV, and how fund managers can position themselves, is being held on Wednesday 5^th December in Sydney, hosted by Merrill Lynch Australia, and sponsored by Citco, Moore Stephens and TMF FundServices. The event is already close to capacity and another seminar is being organised for the overflow of delegates. For details, contact dchin “at”  basispoint.com.au

Mr Chin’s interview with the Australian Financial Review provides useful background and is available here.