Retail FUM gain momentum
Retail funds under management and advice (FUMA) appear to be gaining momentum, with the sector recording positive net cash inflows for the third consecutive quarter.
This, according to separate research reports from Dexx&r and Plan For Life, followed five years of negative quarterly cash flows and subdued investor sentiment.
The sector recorded a 3.7 per cent growth in the December 2013 quarter, now sitting at $152 billion, while the combined retail and wholesale FUMA had double-digit growth (16 per cent) during 2013.
Amongst the top five managers, Macquarie had achieved substantial growth, which was mostly due to its acquisition of Pertpetual's private wealth administration platform. Its total FUM (wholesale and retail) grew by 33.7 per cent.
Another big performer in the retail sector is Westpac, while AMP and the Commonwealth Bank are not too far behind, growing 17 per cent and 16 per cent respectively over the December quarter.
"The recent increase in FUMA reflects the combination of growth in investor confidence as they search for higher returns and the weakening of the Australian dollar over the quarter," Dexx&r said.
The researcher also pointed to the highest growth in international shares since June 2009.
"With interest rates remaining at historical lows there is a pent-up appetite for higher yields and capital growth," the report said.
"As a result, net cash flow into international share classified options was positive during December after two consecutive quarters of net outflows."
Recommended for you
Insignia Financial has reported net inflows of $448 million into its asset management division in the latest quarter, as well as popularity from advisers for its MLC managed accounts.
With ASIC questioning the dominance of research houses when it comes to retail usage of private market funds, a research house has shared how its ranking process sits alongside ASIC’s priorities.
Two Australian active fund managers have been singled out by Morningstar for their ability to achieve consistent performance and share price growth in the past 12 months.
Pinnacle Investment Management has expanded its private market coverage, forging a strategic partnership with a private markets manager via a 13 per cent stake acquisition.
