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.
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