Retail fund inflows and FUM continue to impress
The National/MLC group topped the chart in retail funds under management (FUM) for the June quarter, according to Standard & Poor’s (S&P) latest market share report, having overtaken the Commonwealth/Colonial group in the last year.
This positive result for National/MLC mirrors the high-performing retail managed funds market. Flows into retail managed funds continued to surge, adding $12.3 billion in the June quarter and $31.8 billion for the year to June 30.
Rounding out the top three retail funds in terms of FUM are National/MLC on $58.3 billion (12.3 per cent market share), Commonwealth/Colonial on $57.6 billion (12.2 per cent market share) and AMP on $53.2 billion (11.3 per cent market share).
The measurement of net fund under administration flows for the June quarter showed a wider disparity, with AMP’s flows of $2.5 billion outstripping its nearest competitor, Macquarie Bank group, by $800 million.
S&P attributed AMP’s growth in fund flows, which are up $1.6 billion from the March 2006 quarter, to the Government’s superannuation changes. AMP’s Signature Super Future Directions Balanced fund received the highest inflows, accounting for $1.1 billion of the June quarter flows.
According to the S&P report, “The net flows into retail are 92.2 per cent higher for the June 2006 quarter than for the March 2006 quarter, and 123.6 per cent higher than for the June 2005 quarter”.
“The Federal Government’s Budget announcements in relation to superannuation contributed to large inflows over the June quarter,” said S&P director of fund data and client services Julie Orr.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
