Stars in their eyes
Graham Rich
Not only is the Commonwealth BankofAustralia and ColonialFirstState (CBA/CFS) conglomerate the largest platform provider in terms of funds under management (FUM), but the rate at which it is growing is also above the industry average, according to specialist fund information business FundData.
Named the 2007 Super Star in FundData’s fourth annual John West Platform Awards, CBA/CFS boasts $45.5 billion in platform FUM and an annual platform FUM growth rate of 36.6 per cent — 9.1 per cent higher than the industry average.
FundData chief executive Graham Rich said it was the combination of size and growth that mattered, not just total FUM.
“In any business, absolute scale and absolute growth are two of the key metrics of business health. Of course, they’re not the only metrics, and these awards make no attempt to give comment on the numerous other measures,” Rich said.
“But absolute scale and growth can be deceiving. Relative scale and growth are equally important and in many ways give a better insight into the competitiveness of a platform and its long-term prognosis.
“A group can be large and growing strongly but, if its growth isn’t keeping pace with the industry averages, it’s actually losing ground against its competitors.”
As such, the National Australia Bank (NAB) and MLC group of businesses has been named the 2007 Fading Star by FundData for having above average platform FUM of $63.4 billion, but below average platform FUM growth of 22.02 per cent.
“NAB/MLC remains the largest platform group by marketer view and by funds under administration,” Rich said. “But this is the third year running that it has been in the Fading Star category. Inexorably, its competitors are gaining ground on it.”
FundData has also identified the up and coming within the platform industry, with Skandia being named the 2007 Rising Star for having above average platform FUM growth (33.34 per cent), albeit below average in terms of platform size ($5.82 billion).
“Skandia appears in the Rising Star category for the fourth year running and it’s still exhibiting 30 per cent plus growth, a great achievement by any standards,” Rich said.
Recommended for you
While the last several months have seen increased market volatility, particularly in the US, advisers said there are multiple reasons why there has been an increase in defensive asset flows.
Scarcity Partners believes the dynamics playing out in the managed account and outsourced chief investment officer market are “here to stay” based on positive developments in financial advice.
Former executive chairman of failed stockbroker BBY, Glenn Rosewall, has been charged with aiding, abetting, counselling or procuring BBY’s dishonest conduct in relation to a financial service.
Fidelity International research has revealed Australian investors are significantly more optimistic about the market outlook and feeling more comfortable than their APAC peers, despite ongoing market volatility.
