Funds under management fall across retail and wholesale: DEXX&R

Retail investment funds under management (FUM) fell by 4.6 per cent to $119.8 billion over the June quarter, down from $125.7 billion as at March, the latest research from DEXX&R has found.

According to the 'Analysis Market Share Report', the retail investment (non-superannuation) segment reported the largest downward spiral in FUM than in any other investment segment, falling by 11.21 per cent from $135 billion to $119.8 billion over the year to June 2012.

All of the 10 companies listed in the report also experienced declines in retail FUM over the last three months. ANZ Executors & Trustees outperformed over both the quarter and the 12 months to June, declining 1.7 per cent since March and 1.6 per cent over the year.

DEXX&R managing director Mark Kachor said the continual decline in retail investment since 2008 was due partly to the fact that retail funds are not subject to preservation and are more likely to be dealing with geared investments, which become unsustainable as underlying assets decline.

"You really need 9-12 months of consistent positive returns - they don't have to be significant - before the appetite grows for equities," he said.

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Comparably, super funds have a certain degree of compulsory or semi-compulsory inflows, particularly as the end of the financial year approaches, he added.

"Nearing the end of the June quarter, super members are all looking to maximise their deduction, particularly as the concessional contribution thresholds come down," Kachor said.

Despite this, the wholesale market (pooled superannuation and wholesale trusts) also reported declines, falling by 3.8 per cent to $294.9 billion over the June quarter.