MLC and co’s multimanager dominance challenged
By Michael Bailey
The world’s five largest manage-the-manager investment houses, including National Australia Bank’s MLC, have seen their market share shrink rapidly in the past four years as new entrants exploit booming demand for the multi-manager sector.
Global assets in multi-manager products, including manage-the-managers with underlying discrete mandates and fund-of-funds with underlying public unit trust mandates, surged 30 per cent during 2004 to US$960 billion.
However, the proportion held by the world’s largest manage-the-managers — Russell Investment Group, Vanguard Group, SEI Investments, National Australia Bank and Northern Trust Global Advisors — fell below 67 per cent after exceeding 80 per cent in 2001, according to consultant Cerulli Associates Global Multimanager Products 2005 report.
Cerulli said the interest in multi-manager products stemmed from a growing global appetite for products with advice embedded within, as well as the widening split between manufacturing and distribution functions in funds management.
Japan’s multi-manager assets rocketed up 144 per cent off a low base during 2004, the United Kingdom market — where MLC is a player — grew 64 per cent, while the United States, Australia and Spain also invested in the vehicles at a rate above the global average.
Most of Europe, however, lagged behind due to muted interest in equity-oriented products.
Recommended for you
AZ NGA has partnered with an Adelaide-based accounting and financial planning practice as it expands its presence in South Australia.
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
