Calming of storm for fund managers
The Australian funds management industry appears to have ‘turned the corner’ after end of year figures released by research houseDexx&rindicate a healthier state of affairs despite a tough year for investment markets.
The Dexx&r Leading Indicator Report on market trends finds that despite a 4.44 per cent decline in funds under management (FUM) for allocated pensions - down to $33.7 billion, the growth in FUM for wrap accounts has offset this decline.
Dexx&r managing director, Mark Kachor suggests that the increase in flows towards wrap accounts has cushioned the downturn in the retail personal super and savings and investment retail sectors over the 12 months.
However Kachor expresses overall surprise at the results as he was expecting them to be worse, and he says with the exception of allocated pensions the figures are suggestive of the industry having turned the corner.
With regard to the decline for allocated pensions, Kachor says the slow-down is “bewildering” but indicates it’s largely because people have been deferring their retirements.
The analysis claims the retirement incomes sector has been affected both by negative investment returns, and the ongoing outflow from payment of regular pension payments.
The bottom line results of the Dexx&r research show that in the retail market, FUM for employer super increased by 4.81 per cent to $45.1 billion, while those for personal super increased by 3.61 per cent to $90.3 billion.
This compared with the decline for allocated pensions, and savings and investment also dropping by 1.88 per cent to $107.6 billion.
In the wholesale market, FUM for pooled super trusts declined by 4.62 per cent to $54.4 billion, however those of wholesale pooled trusts increased by 2.18 per cent to $105.4 billion.
The Dexx&r research also revealsAMPcontinues to lead with respect to FUM for both employer and personal superannuation. However,Colonial/Commonwealth topped the league table for total retail and wholesale FUM.
The National’sMLCand Colonial topped the tables with respect to pooled superannuation trusts and wholesale investment trusts respectively.
Recommended for you
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
