Industry passes $700 billion barrier

The Australian funds management industry is moving towards $1 trillion in funds under management after passing the $700 billion mark in the latest figures released byAssirt Research.

According to interim figures in the March 2004 Market Share Report, the industry grew 2.9 per cent compared to the December 2003, rising from $698.3 billion to total $718.5 billion as at the end of March - an annualized growth of 13 per cent.

The value of the retail managed fund market increased by 3.2 per cent over the quarter, growing from $268.5 billion to $277 billion.

Assirt Research attributes the growth over the quarter to positive net inflows and increasing asset values, with domestic and international equities returning a positive 4.5 per cent and 1.4 per cent respectively.

Overall net inflows for the March quarter were $2.2 billion, marginally down on the $2.4 billion recorded over the December quarter — for the twelve month period net inflows stood at $9.4 billion, matching the annual net inflows recorded for the year preceding March 2003.

Australian fixed interest, which includes mortgage funds, recorded the highest of the sector quarterly net inflows, with $849 million in funds, and compares to the $542 million the sector posted over the December 2003 quarter.

UBS Global Asset Management,Platinum Asset ManagementandAXA Asia Pacificretained their top three podium placings in terms of net retail inflows with funds flow of $624 million, $464 million and $349 million respectively over the quarter.

While in terms of the overall big hitters there was no movement with Commonwealth/Colonial, National/MLCandAMPretaining their positions as the industry’s heavyweights.