Markets boost fund managers and platforms inflows.
The managed funds and platform sectors have both performed well over the 12 months to March posting around 15 per cent growth — much of it off the back of strong stock market activity.
The total managed funds sector grew by $115 billion in the March quarter of this year with $45.3 billion being added to the retail sector and $69.9 billion added to the wholesale sector in the first three months of this year.
The growth in retail was up 14.4 per cent to a total retail funds under management (FUM) figure of $742.7 billion according to Plan for Life which stated that while strong share market performance contributed to the growth high levels of market volatility has subsequently resulted in much of this outperformance being reversed.
Despite this many of the major funds management groups have reported double digit annual funds under management growth even as gross inflows fell by 20 per cent to $36.4 billion during the March quarter.
For the year ending in March the decline in inflows was only 3.5 per cent with inflows into the main superannuation market declining by 0.4 per cent while the retirement income market inflows increased by 9.4 per cent while the unit trusts and investment funds market had saw a 13.6 per cent drop in inflows.
The investment platform sector also posted strong growth at 15.5 per cent to the end of March led by BT Financial Group who retain the lead in market share and Macquarie Group which had growth of more than 18 per cent.
In quarterly data released by Plan for Life the total platform, wrap and master trust sector increased its funds under management (FUM) by $89.1 billion to $662.8 billion for the year ending March 2015.
Around half of that growth ($42.5 billion) was created in the March quarter alone due to strong stock market activity, with some of this market growth having been reversed in the following quarter due to continued market volatility
Wrap accounts climbed 19.8 per cent over the past year to the end of March reaching $264.4 billion in FUM or 39.9 per cent of the total wrap/platform/master trust market.
Inflows of $72 billion were offset by outflows of $51.4 billion with a net fund flow of $20.7 billion while on investment platforms outflows of $56 billion outstripped inflows of $55.9 billion for a total net funds flows of -$0.2 billion.
The master trusts sector fared better with net flows up by $5 billion, or nearly 70 per cent, after inflows increased by 21.7 per cent to $18 billion and outflows were moderate at $13 billion with a total sector FUM of $95.3 billion.
AUTHOR
Jason Spits
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