Navigator charts course to the top again
Norwich has again topped net inflows into its Navigator master trust for the second quarter running, according to Morningstar research, with just under $231 million poured into its coffers in the March quarter.
Norwich has again topped net inflows into its Navigator master trust for the second quarter running, according to Morningstar research, with just under $231 million poured into its coffers in the March quarter.
Industry heavyweight Asgard came in second, with net flows for the quarter of more than $223 million, while MLC's FlexiPlan recorded in-flows of almost $166 million, ranking it third.
In the past year, FlexiPlan Australia has increased funds under man-agement by 83 per cent, from more than $785 million to $1.44 billion, making it the biggest mover of the past year. Hot on its heels was Westpac, which broke through the $1 billion mark in assets under man-agement with a 76 per cent increase in assets, from $599 million to almost $1.06 billion for the year.
While Morningstar's research found net assets of master trusts in-creased by 30 per cent in the past year, the growth rate had slowed from the previous year, which recorded a 43 per cent increase. Fund inflows were also down on the previous year, from $5.34 billion to $5.03 billion.
However, Morningstar managing director Graham Rich says the figures do not necessarily point to a decline in the master trust market.
He argues many funds with similarities to discretionary master trusts that are not classified as such may be stealing market share from heavyweights such as Asgard, Norwich and IPAC. Rich points to exam-ples such as ANZ's Gateway and MLC's funds to illustrate his point.
"I think it's probable that traditional master trusts may have lost the uniqueness of their propositions as other institutions pick up on the concept of non-discretionary master trusts," he says. "Therefore, what appears to be a lag in the master trust market is deceptive as the banks, for example, are offering similar products that are not defined as discretionary master trusts."
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Samantha Walker
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