Commonwealth/Colonial leads the pack

THEMarchquarter market share results from both Morningstar/Plan for Life and Assirt demonstrate the volume of money currently flowing into the united funds management and banking groups.

According to the Morningstar/Plan for Life March quarter market share report, the Commonwealth/Colonial and National Australia Bank/MLC consolidated funds management groups remain the giants of the Australian managed funds industry.

Commonwealth/Colonial Group remains the largest consolidated Australian retail fund manager. Commonwealth/Colonial had approximately $47.2 billion managed fund assets, up from $46.8 billion at December 31 and from $42 billion one year ago.

These two groups together accounted for almost a third (31.1 per cent) of Australian managed funds assets at March 31, 2002, slightly up on their combined 30.5 per cent 12 months ago.

Commonwealth/Colonial’s share of total Australian retail managed funds assets increased slightly from 16.3 per cent at March 31, 2001 to 16.6 per cent this year, with retail unit trusts and superannuation masterfunds the two largest product types.

While both product types accounted for $10 billion in assets each last year, retail unit trusts as at March 31, 2002, account for $13.4 billion and superannuation masterfunds for $12.5 billion.

The second largest consolidated funds management group, according to Morningstar/Plan for Life, is the National Australia/MLC Group, with $41.2 billion in assets as at March 31, 2002, up $4.7 billion over the year.

This united force accounts for 14.5 per cent of total managed funds industry assets, up from 14.2 per cent last year. Masterfunds account for two-thirds or 65.4 per cent of National Australia/MLC’s assets, with retail superannuation assets falling from $528.8 million at March 31, 2001, to $492.3 million this year.

According to the Assirt quarterly net inflows for retail fund managers, Colonial has also held its top place with $400 million more funds under management than its nearest competitor, AMP with $549 million.

Colonial jumped to top spot following the September quarter last year, overtaking Commonwealth, National Australia/MLC and AMP.

The question now is whether Colonial will maintain its position given that an amalgamation plan was announced for the two investment businesses of Colonial and Commonwealth at the end of the March quarter.

Further, the departure of Colonial’s head of Australian equities, Greg Perry, will take effect from June this year.

National/MLC dropped to third spot this quarter with $508 million, while ANZ dropped from sixth to 10th with $137 million in funds under management.