Bank guarantee still a magnet in uncertain times


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.
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.