Bank guarantee still a magnet in uncertain times

cent/government/government-and-regulation/BT/amp/

13 September 2011
| By Mike Taylor |
image
image
expand image

The Government's bank guarantee appears to be still acting as a magnet for investors in uncertain times.

The latest data released by Plan for Life covering the June quarter revealed that gross inflows for the year to June were down by over a quarter (26.1 per cent) on the previous 12 months to $155.6 billion.

It said this was due to a contraction in cash trust business, with money instead flowing into bank accounts attracted by the government guarantee.

It said retail managed funds declined 1.5 per cent during the June quarter to $510.7 billion but had remained in the black over the 12-month period, finishing up slightly by 2.5 per cent, something Plan for Life considered an achievement given the circumstances of continuing economic uncertainty.

The data revealed that Commonwealth/Colonial First State had led the way with inflows increasing 6.2 per cent, followed by BT (5.4 per cent), AMP (5.4 per cent) and National Australia Bank/MLC with 5.2 per cent.

Homepage

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 6 days ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS