Platform flows lowest in 10 years
The platform market suffered yet another fall over the last year, with net fund flows reaching their lowest levels in 10 years.
This is according to a new report by Plan For Life, which found the overall platform market fell $5.8 billion in funds under management (FUM) in the year to June 2012.
Despite a slight increase in inflows, outflows increased even faster, which could be attributed to the continuing market volatility, the report said.
"A general air of nervousness on underlying global investment markets, caused by a series of as yet unresolved European financial crises coupled with record and massive US budget deficits/debts, was responsible for this poor and choppy performance," the report stated.
Of the top 10 institutions, only BT Financial Group, Colonial First State and Mercer recorded small boosts, while the rest - including AMP, MLC, OnePath and Macquarie - experienced falls in their FUM.
After its peak in 2007, the platform market net flows plummeted during the global financial crisis in 2008-09.
While the sector experienced a slight resurgence in 2010, according to Plan For Life, net flows continued to fall throughout 2011 and 2012.
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
