BT Funds Management’swrap service has this week passed the $6 billion mark for funds under advice after a period of unprecedented growth.
BT, which started the wrap service in 1998, had fund inflows into the wrap of $760 million in the March quarter of this year and $720 million in the December quarter last year to reach the milestone.
But it was the September quarter of last year, where the flow of funds into the wrap service breached the $1 billion mark for the first time, which set BT up to break the $6 billion barrier.
“The third quarter of the year is generally the best one for us because it is the time that we get a lot of year end money flowing into wrap products,” BT’s head of wrap distribution Sean West says.
West says BT has set itself an ambitious target of achieving almost $4 billion worth of inflows into the wrap service this year.
“We started the year at just over $5 billion and we are hoping to finish the year at close to $9 billion,” he says.
He says BT’s wrap service will benefit not only from increasing interest in the product from advisers and investors, but also from consolidation amongst providers of wrap services, leaving fewer competitors in a rapidly growing market.