Masterfunds’ growth highest in three years
Masterfunds have continued to grow in size, ending the year to March 31 with nearly half a trillion dollars in funds under management (FUM).
The sector grew by $62.8 billion or 14.5 per cent over the 12 months ending in March, posting a third of that growth of $23.9 billion in the March quarter alone, according to data released by Plan for Life.
While the increase in FUM is the highest since 2010, it is below the levels recorded from 2004 to 2008 and is three times lower than 2008, when FUM increased by nearly $45 billion.
Inflows into masterfunds increased by 8.4 per cent to $120.2 billion while outflows grew by 4.8 per cent to $105.9 billion. AMP, Commonwealth/Colonial, BT and National Australia/MLC all reported FUM growth of 14 per cent or more.
In the master trust sector funds under management increased by $75.1 billion or 10.9 per cent as inflows dropped to $14.8 billion and outflows rose to $11.8 billion. The top three groups - AMP ($22.5 billion FUM), BT ($20.2 billion FUM) and OnePath ($11.9 billion FUM) - continued to control nearly three-quarters of the master trust business.
The wrap sector fared better, with FUM increasing by 22.2 per cent to $178.1 billion. Inflows of $58.3 billion were offset by outflows of $47.2 billion.
BT, AMP, Macquarie and National Australia/MLC accounted for two thirds of the total FUM as well 85 per cent of the wrap administration services offered in the industry, with BT alone holding 45 per cent of this market.
Platforms also recorded sizeable FUM growth, increasing by 10.5 per cent to $242.4 billion. Inflows of $47.1 billion were almost matched by outflows of $46.8 billion.
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
