Falling inflows shrink investment funds market
The size of the investment master funds market fell by 5.8 per cent to $116.1 billion over the year to June 30, according to Plan for Life statistics.
The researcher found that inflows increased by a “relatively marginal” 1.5 per cent to $39.3 billion while outflows rose by a “more significant” 11.2 per cent to $28.9 billion.
All of the larger companies reported year on year lower FUM, it found, with Perpetual (down 19.3 per cent to $4.6 billion), National Australia/MLC (down 9.5 per cent to 10.7 billion) and AMP (down 9.2 per cent to $5.5 billion) experiencing the highest falls.
Retail product FUM fell by 9.9 percent to $532.2 billion in the year to June 30, largely the result of an across the board decline in underlying asset values as investment markets suffered substantial corrections, particularly in the latter half of the year.
Inflows to the sector were up “only” 2.3 per cent to $299.2, while outflows jumped 15.6 per cent to a total $282.00 billion, Plan for Life said.
This reflected the fact that the legislation driven, once-off mid-2007 surge of monies into super and retirement income funds and products had now passed, it said.
AUTHOR
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
