Equity returns boost managed fund market
The retail managed fund market has been given a significant boost by increased net inflows as well as strong equity returns during the September 2003 quarter, according toAssirt’s latest Market Share Report.
Overall the managed fund market increased by 4.5 per cent of the quarter from $245.1 billion to $256.2 billion, contributing to growth of 11 per cent over the last year.
Net quarterly inflows ($2.7 billion) were up considerably on the $1.9 billion of the previous quarter - the highest level since the March 2002 quarter of $3.1 billion.
However on an annual basis net inflows were down 44 per cent to $7.2 billion, compared with the September 2002 flows.
Equity funds were the biggest winners in terms of net inflows - jumping from $321 million in the June 2003 quarter to $1.3 billion, representing the largest inflows into the sector since the June 2002 quarter, when equity net inflows were $2.6 billion.
As confidence returns on equities, inflows into the more defensive sectors of fixed interest and listed property are tending to decrease, although still positive.
Multi-sector funds also experienced healthy inflows ($752 million), with the majority of funds flowing into superannuation and offered via the major platforms.
UBS Global Asset Managementtopped the list of managers in terms of quarterly net inflows with $703 million, followed byPlatinum Asset Managementwith $444.1 million andAXA Asia Pacificwith $374.4.
New entrants to the list of top 10 managers by quarterly net inflows werePM Capital,Sandhurst Trustees,AMPandABN Amro, while there was no change to the relative ranking of fund managers by size.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
