Commonwealth Bank's FUMA down
Amid difficult investment market conditions, the Commonwealth Bank has reported decreases in funds under administration (FUA) and funds under management (FUM) for the December 2008 quarter.
An outflow of short-term cash mandates is also attributed to the decreases, with FUA recording an 11 per cent drop and FUM a drop of 11.9 per cent for the quarter.
While the deterioration of investment markets is clearly taking its toll, the gradual winding down of legacy products has also resulted in retail net flows of negative $749 million.
While CBA reported positive net flows for its FirstChoice and Avanteos funds, the figures for FirstChoice were significantly down on results from June 2008.
The bank recorded outflows of $7.6 billion for wholesale funds, which was attributed to the outflow of short-term cash mandates.
Reflecting the broader industry trends, CBA’s life and general insurance businesses in wealth management have reported strong growth.
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