BT reaches almost 50 per cent market share in wraps
BT Financial Group (BT) now accounts for almost half of the total wrap market, resulting in even more concentration in this space, according to a latest report released by Plan For Life.
Last year has seen a fall of $16.5 billion in funds under management (FUM) in the overall masterfund market, which encompasses wraps, platforms and master trusts.
Both wrap and platform FUM fell by more than 5 per cent each, with disappointing net flows for all major players.
However, the market is dominated by a handful of institutions which account for close to two-thirds of the overall total: BT, National Australia Bank/MLC, Macquarie Bank and AMP.
"From an administrator perspective the wrap market is even more concentrated with BT ($68.1 billion) alone being responsible for almost half, or 48 per cent of the total," the report said.
While most leading companies recorded decreases in FUM, BT and Colonial First State fared best by reporting relatively little change in the overall level of their masterfund business in 2011.
Perpetual, however, had a particularly tough year losing 14 per cent in FUM over the year to December 2011, followed by Macquarie, IOOF and OnePath.
"Uncertain, volatile and more often than not negative underlying investment markets were responsible for this overall poor performance for 2011," Plan for Life stated.
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