The Australian share market is now the seventh largest by market capitalisation in the world. The Australian foreign exchange market is the seventh largest in the world and the USD/AUD is the fourth most traded currency pair. Australian fund managers have the fourth largest pool of funds under management globally and Sydney will overtake Tokyo by 2012 to become third behind New York & Londo
The bulk of this pool of funds has been generated domestically via the Commonwealth legislated Superannuation Guarantee introduced in 1992 and for the bulk of the elapsed time pegged at a compulsory minimum 9% of both public & private sector wages & salaries.
New South Wales is home to 45 per cent of the top 500 enterprises in Australia by revenue. Sydney is the headquarters for 80 per cent of foreign and domestic banks in Australia. Of the 57 domestic and foreign authorised deposit-taking banks in Australia, 55 have a presence in Sydney.
More than 172,000 people in New South Wales are employed in the finance and insurance sectors. Sydney's financial services workforce is half that of London and one-third that of New York.. New South Wales generates more than 44 per cent of Australia's finance and insurance industry income. It is the location of 28 of the top 50 finance companies (by revenue) in Australia.
I suggest that the investment of this massive pool in Intl Bond markets and for stocks primarily in the MSCI provides a counterbalance on the capital account and dividends on the current account. It also adds explanation to the USD/AUD volume and stability relative to the peaks and troughs generated by investment capital inflows and export income inflows against interest and dividend outflows.
It looks like I am not able to follow all comments on this site. Are you back to normal relations with Mr. Armstrong? Are you getting the pdfs from another site? I think a Google group would be easier to manage that this site.
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