Managed funds market on growth course
The Australian retail managed funds market is projected to go close to doubling in size over the next ten years, but the products going towards its make-up will have changed, according to the latest assessment released by Plan For Life.
The Plan for Life analysis said that its medium project for the outcome for the market out to 2021 suggested that it would grow from its current level of $511.1 billion in retail funds to $937 billion by the end of 2021.
It said these figures included cash management trusts and old-style regular premium policies.
However it said certain products were declining, such as ADFs and deferred annuities, and would ultimately disappear, while others such as bonds would show some modest signs of growth.
Commenting on the research, Plan for Life actuary Simon Solomon said immediate annuities, which had been in the doldrums for several years, were now evidencing renewed vigour and were forecast to make an increasing impact in future years.
However he said superannuation as well as retirement income products were expected to continue to grow and produce the lion's share of future growth, with unit trusts and managed funds recovering gradually from the low rate of net flows experienced in recent years.
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