The Government’s bank guarantee appears to be still acting as a magnet for investors in uncertain times.
The latest data released by Plan for Life covering the June quarter revealed that gross inflows for the year to June were down by over a quarter (26.1 per cent) on the previous 12 months to $155.6 billion.
It said this was due to a contraction in cash trust business, with money instead flowing into bank accounts attracted by the government guarantee.
It said retail managed funds declined 1.5 per cent during the June quarter to $510.7 billion but had remained in the black over the 12-month period, finishing up slightly by 2.5 per cent, something Plan for Life considered an achievement given the circumstances of continuing economic uncertainty.
The data revealed that Commonwealth/Colonial First State had led the way with inflows increasing 6.2 per cent, followed by BT (5.4 per cent), AMP (5.4 per cent) and National Australia Bank/MLC with 5.2 per cent.
