Master funds in good shape despite downturn
The Australian master fund market finished the financial year in good shape - despite a poor last quarter, according to the latest Plan for Life data released this week.
The data covering the year to the end of June, revealed a $26.7 billion increase (6.6 per cent) in funds under management to lift the total value of FUM to $428.4 billion.
Plan for Life noted this increase had occurred despite funds actually falling by $5.5 billion during June.
It said inflows of $106.9 billion were significantly up on the previous year's result of $99.3 billion, but outflows had also risen by 18.6 per cent to $95.1 billion.
The analysis said all major companies apart from Suncorp and Perpetual reported some growth over the year.
Looking at wraps, the Plan for Life data said FUM stood at $148.5 billion, representing 34.7 per cent of the total market - with BT Financial, National Australia Bank/MLC and Macquarie being the leading players, and BT in particular holding 21 per cent of FUM.
It said platforms comprised 50.2 per cent of the total market with $215.2 billion in FUM with four groups holding over $200 billion in FUM led by NAB/MLC ($49.3 billion) and Commonwealth/Colonial ($49.1 billion).
The Plan for Life data revealed master trusts accounted for 15.1 per cent of the market this quarter, with $64.7 billion in Funds Under Management - attracting only 11.7 per cent of total inflows with $12.5 billion over the year.
AUTHOR
Mike Taylor
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.
