The funds under management and advice (FUM/A) held in retail and wholesale funds have returned to growth in the 12 months to March, 2017, with an increase of 7.4 per cent to $1.186 trillion, according to DEXX&R.
Retail investment (non-super) saw a growth higher than other sectors with an increase of 9.9 per cent or $18 billion over the year, with personal super showing a 7.6 per cent increase, employer super growing to $10 billion and retirement incomes increasing 6.7 per cent.
The three largest retail and wholesale managers were NAB, AMP and Westpac which recorded a growth of 11 per cent, 8.4 per cent and 9.9 per cent, respectively.
Investment returns were the primary driver of FUM/A growth over the past 12 months in each segment as net cash flows were negative across all segments.
As far as the retail investment (non-super) was concerned, the current growth in FUM/A outside super was expected to be boosted over the next 10 years with the introduction of revised contribution caps and retirement phase account balances, according to DEXX&R.
At the same time, allocated pensions accounted for the majority of retirement income FUM/A, increasing 6.5 per cent to $179.1 billion at the end of March, 2017 while immediate annuity total assets, which made up the remainder of the retirement income market, increased by 8.7 per cent.
In the employer super segment, 55 per cent of total FUM/A was held in MySuper options, up from 50 per cent at the end of December, 2016.
Other investment options included multi-sector, Australian shares and overseas investments which accounted for 35 per cent of total FUM/A, down from 38 per cent at the end of December, 2016.