Market volatility dogs CommBank's wealth management
Market volatility is continuing to challenge the wealth divisions within the Commonwealth Bank, according to the big banking group's latest quarterly trading update filed on the Australian Securities Exchange today.
Commenting on the September quarter data, the bank said market conditions had "continued to create headwinds for Wealth Management".
It said Funds Under Management and Funds Under Administration had declined by 2.7 per cent and 3.7 per cent respectively during the quarter due to negative investment returns, partially offset by foreign exchange gains as the Australian dollar pulled back from some of its recent highs.
However, the banking group said FirstChoice and Custom Solutions had experienced positive net inflows of $408 million and $321 million respectively during the quarter.
Looking at insurance, the quarterly update said in-force premiums grew by 2.3 per cent in the quarter, with good growth in retail direct life and general insurance.
While the overall quarterly update revealed unaudited cash earnings for the quarter were approximately $1.75 billion, chief executive, Ralph Norris said operating conditions remained challenging amid the continuing global economic uncertainty.
He said that given the continuing volatility and economic uncertainty, the Commonwealth Bank would be maintaining its conservative business settings.
AUTHOR
Mike Taylor
Recommended for you
Research by Morningstar has found fixed income funds are bucking a general trend around managed fund fee dispersion with a smaller fee dispersion compared to equity ones.
As investors seek to diversify their portfolios, the naming of bond labels has broadened out to include green, social and impact bonds, according to the annual RIAA report.
Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million.
Metrics Credit Partners is expanding its private credit fund range with a managed fund for retail investors following investor demand.
