Masterfunds plummet in September quarter
The masterfund market dropped $23.4 billion in funds under management (FUM) through the September quarter, resulting in an overall 2.9 per cent or $12 billion drop over the 12 months to September 2011, according to Plan For Life data.
The most recent figures show the masterfund market at $405.6 billion after being driven down by volatile global investment markets affected by European sovereign debt crises and US government deficits, according to Plan For Life.
Inflows into masterfunds in the 12 months to September 2011 were $111.6 billion, up from $102.6 billion in the prior corresponding period. Outflows also increased, however - up 17.5 per cent from $84.6 billion to $99.4 billion.
BT is the overall market leader in terms of FUM with $83.9 billion or 20.7 per cent, ahead of NAB / MLC (18.1 per cent), AMP (16.6 per cent) and Commonwealth / Colonial (13.8 per cent). BT experienced by far the greatest inflows for the year with a $41.8 billion (37.5 per cent) increase.
Next best was Commonwealth / Colonial with $17.3 billion (15.5 per cent). They were also the best performed in terms of net increase, up $7 billion and $3 billion respectively.
Wraps, which make up around one third of the masterfunds market with $140 billion in FUM, were down 4.3 per cent over the year. This was despite net inflows of $5.1 billion, according to Plan For Life.
The leading players in terms of FUM are BT ($29.3 billion), NAB / MLC ($25.2 billion), Macquarie ($21.6 billion) and AMP ($14.9 billion). BT now administers almost half the market, having increased its share of funds administered from 20.9 per cent to 48 per cent.
Platforms, which make up around half of the masterfunds market, were similarly down 4.2 per cent, again despite slight net inflows of $1.5 billion. The main players are Commonwealth / Colonial ($46.2 billion), NAB / MLC ($46.0 billion), AMP ($44.1 billion), IOOF ($20.7 billion) and OnePath ($17.7 billion).
Master trusts actually increased by $5.6 billion due to $5.5 billion of net inflows, up to $65 billion. The market leaders are AMP ($19.4 billion), BT ($15.5 billion) and OnePath ($10.1 billion), according to Plan For Life.
Recommended for you
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
Those large AFSLs are among the groups experiencing the most adviser growth, indicating they are ready to expand following a period of transition and stabilisation after the Hayne royal commission.
The industry can expect to see more partnerships in the retirement income space in the future, enabling firms to progress their innovation, according to a panel.
