The Government's tinkering with tax concessions around superannuation may have generated a minor exodus of funds as upper income earners sought alternatives investments outside of super.
The latest data from Dexx&r has pointed to the fact that funds under management and advice (FUM/A) held in retail and wholesale managed funds increased by 3.85 per cent to $1.144 trillion over the 12 months to September 2016 — an increase of $43 billion on the September 2015 figure of $1.101 trillion.
According to the Dexx&r analysis, after many years of lacklustre growth and falling FUM/A, the retail investment segment (non-super) experienced the greatest increase in FUM with a 13.9 per cent increase of $23 billion for the year.
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It said personal super recorded a 3.7 per cent increase of $7 billion over the same period, employer super a 2.5 per cent increase of $3 billion, and industry funds a 9.7 per cent increase of $71 billion.
According to Dexx&r, during the September quarter, total FUM/A in the retail investment (non-super) segment increased by four per cent or $7.5 billion, to $193.1 billion at June 2016, up from $185.6 billion at March 2015.
It said that amongst the top five managers, Westpac FUM/A increased by 6.5 per cent from $39.1 billion at June 2016 to $41.6 billion at September 2016. Macquarie FUM/A increased by 4.7 per cent during the quarter to $49.4 billion, up from $47.2 billion at June 2016. CBA FUM/A increased by 4.4 per cent, to $32.3 billion, up from $30.9 billion.
According to the analysis, the current growth in FUM/A outside super is expected to be boosted over the next 10 years with the introduction of revised contribution caps and retirement phase account balances.