Industry wrapped by strong funds growth

The funds management industry grew by just under 15 per cent for the year ending September driven by strong investment markets and buoyed investor sentiment.

According to research group Dexx&r, wrap platforms in particular rose head and shoulders above the pack, namely for being the investment vehicle of choice and registering an influx of almost 60 per cent in funds under administration.

However according to Dexx&r’s Leading Indicator Report, despite wrap platforms winning in the popularity stakes, the more established master trust market still shadows wraps in terms of funds under management.

Total funds under management for master trusts at the end of September stood at $106.25 billion compared to wraps with $31.18 billion.

In terms of growth however, the $11.69 billion poured into wrap accounts took the shine off the performance of master trusts, which grew by a modest 16.53 per cent.

Over the 12 month period to September 30, the personal superannuation market grew by 14 per cent to $112.4 billion. Macquarie was one of the notable outperformers, adding 60.7 per cent to house $5.4 billion in funds under administration, attributed in part to more than doubling in size of personal super business in the Macquarie Wrap service.

In the same category, Asgard added 24.4 per cent to its business, rising to $4.9 billion.

Meanwhile, the total retail market increased by 13.91 per cent to $349 billion over the period, while the total size of the retail and wholesale market combined stood at $531 billion according to the report.