In an unprecedented year of change and disruption, the Australian Investment Council continued to focus on initiatives to build engagement with members and broader stakeholders that will grow the industry for the future and contribute to Australia’s employment and economic growth.
The Council continues to implement a strategy that will support the private capital industry – Private Equity, Venture Capital and Private Credit Funds, Institutional Investors and their advisers – in building resilience and achieving positive investment outcomes for the medium and long-term. It also reacted quickly to the challenges posed by the COVID-19 pandemic.
At the onset of the pandemic, the Council conducted a comprehensive member survey to develop insights into the impact of COVID-19 on private capital investments. Through this, the Council identified key reform policy priorities spanning taxation, industrial relations, market deregulation, international competitiveness and innovation, technology and skills and superannuation.
Early in 2020, the Council led the call to stop the proposed introduction of a cap on refundable R&D credits and was pleased to see Government abandoned the previously announced reforms in the October Federal Budget.
This strong connection with government stakeholders and a clear strategy for industry growth provides a focus for the Council to be a forward thinker on industry issues and an effective and visible industry advocate in shaping policies that boost business investment across the economy. It also drives greater social impact through a responsible investment approach and creates networks for purposeful connection and collaboration across our community of members.
Government stakeholders seek one voice that equally represents the growing private capital industry and brings a collective view on the direction that public policy should take to support business investment. This is vitally important to Australia’s transition towards a more knowledge-based and globally competitive market economy.
Strong relationships with Government stakeholders are also critical as Australia’s financial services sector and, in particular, the regulatory landscape for superannuation funds, continues to evolve. The Council is working with key member segments to manage the impact of regulatory change on the ability of local institutional investors to continue to support a sector which has delivered, and continues to deliver, long-term positive returns.
The strength of Australia’s economy will increasingly become more dependent on our ability to support the growth and expansion of our unlisted business sector.
As an industry, we are well-positioned to achieve this. Assets under management are the highest on record and continuing to grow. We are building strong, innovative businesses for the future; and we continue to deliver solid returns to investors.
Being a member of the Australian Investment Council means being part of Australia’s future. The Australian Investment Council would like to thank its members who have contributed throughout, what has been a unique and challenging year, and to all members for their ongoing support.