Retail managed funds shed $98 billion FUM last year: Morningstar
Retail funds under management (FUM) fell a massive $98.3 billion (26.10 per cent) to $278.7 billion over the year to December 31, 2008 — a level not seen since September 2004, according to Morningstar.
Its December 2008 quarter managed fund, market share and flow data research found retail funds under management have now fallen every quarter since peaking in September 2007.
The December 2008 quarter saw the largest drop for the year, with retail funds down $37.8 billion or 11.90 per cent, largely due to negative market movements.
Investors pulled $6.7 billion from retail managed funds over the same quarter, up from the $5.10 billion outflow over the September 2008 quarter.
Retail mastertrust/platform assets under management plunged $44.9 billion over the December quarter, down 12.4 per cent to $317.5 billion at December 31, 2008, the fifth consecutive quarter of decline.
Only $1.5 billion flowed into platforms over the quarter, less than a third of the September quarter's $5 billion inflow.
This was “significantly worse” than the peak inflow in the June 2007 quarter, when investors took advantage of the Government's superannuation co-contribution scheme, business analyst Tito Machado said.
Recommended for you
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
Those large AFSLs are among the groups experiencing the most adviser growth, indicating they are ready to expand following a period of transition and stabilisation after the Hayne royal commission.
The industry can expect to see more partnerships in the retirement income space in the future, enabling firms to progress their innovation, according to a panel.
