Platform market undergoes revival
Wraps, platforms and master trusts have undergone a revival during 2013, as new data shows funds under management (FUM) have grown by 20 per cent — or $94.3 billion — over the year.
The sudden jump follows at least five years of low annual net flows as a result of the global financial crisis, with 2012 levels being the lowest in the last decade.
However, the renewed investor optimism during 2013 has seen the significant rise in masterfund FUM, with outflows growing at a relatively slower pace than in previous years.
"They [FUM] climbed $22.6 billion, or 4.2 per cent in the December quarter alone on the back of buoyant investment markets resulting from all the quantitative easing/low interest rate policies of governments worldwide," according to the new report released by Plan For Life.
Westpac-owned BT Financial Group is still the largest player in the market with almost 20 per cent market share, closely followed by AMP, MLC and Colonial First State. Most major players had a successful year, with all bar Perpetual achieving double-digit growth in FUM.
However, Perpetual's lower growth was due to its Private Wealth Platform being sold into Macquarie's Wrap business, which has since grown by 52.2 per cent.
The total masterfund market now stands at $564.3 billion, with platforms making up 47 per cent of that, wraps 38.2 per cent, while the master trust sector makes up 14.2 per cent of the total masterfund market, according to Plan For Life.
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
