Retail managed funds feel the pinch of stagnant markets
The retail managed funds sector posted an $11.5 billion fall in funds under management (FUM) for the year ending June 2012, according to the latest research from Plan For Life.
In what the research house described as "generally directionless investment markets", the sector finished the 2011/12 financial year at $499 billion, down from $512 in the corresponding 12 months.
Despite this, gross inflows for retail managed funds were at $165.1 billion, up 5.6 per cent.
Only BT Financial managed a 2 per cent growth in FUM to $55.7 billion, although this was down slightly from March results.
Mercer remained steady, with its FUM declining only slightly (-0.2 per cent) while Commonwealth Bank/Colonial First State fell 2.1 per cent and AMP fell 2.5 per cent.
The most significant decreases were felt by Perpetual (-7.8 per cent), National Australia Bank/MLC (-5.5 per cent), OnePath Australia (-5.4 per cent) and Macquarie Bank (-4.4 per cent).
Superannuation and rollovers were down slightly on last year's results, shedding 0.3 per cent in FUM, while retirement income posted a 3.9 per cent increase to $121.6 billion.
It was unit trusts and investment funds however that reported the largest declines, falling 12.1 per cent to $111 billion.
Recommended for you
Investment executives say the benefits of real assets for client portfolios can “absolutely” outweigh the illiquidity risk, provided there is a good understanding of its risks and returns and of client goals.
Fund manager GSFM has appointed a key account manager for Queensland, following the appointment of a head of retail distribution last month.
The struggle to recruit specialist expertise in alternative asset classes means senior analyst salaries are surpassing $200,000 as fund managers compete for talent, observes Kaizen Recruitment.
TWC Investment Management, which launched in September, has unveiled a long-only equity fund targeting global wealth creator stocks.
