Retirement income products leading retail fund growth
Retirement income products are driving growth in Australia's retail fund market, with funds under management (FUM) growing by almost 20 per cent in the year to 31 March 2015, research reveals.
Data from the Dexx&R Analysis Market Share Report, found that funds under management and advice (FUM/A) held in retail and wholesale managed funds grew by 15.4 per to $1.14 billion in the 12-month period.
The report revealed that the strongest growth in FUM in the retail market was recorded in the retirement incomes sector with a 19.6 per cent increase up $27.8 billion to $170 billion from March 2014, while the retail investment segment grew by 15.8 per cent.
Of the top leading managers, AMP recorded FUM/A growth of 23.4 per cent to $32.1 billion, with IOOF's retirement income FUM/A increased by 21.7 per cent to $11.9 billion, while the Commonwealth Bank of Australia saw growth of 19.1 per cent to $41.9 billion.
While FUM/A in the non-superannuation retail investment segment increased by 15.8 per cent to $179 billion over the year to the end of March, with NAB recording the biggest growth, up $3.billion to $18.1 billion.
The report also found that 13 per cent of FUM/A from the employer super sector was held in the MySuper option — up from 11 per cent in the December quarter — while 26 per cent of total FUM continues to be held in the Default options — down one per cent on the previous quarter.
Over the 12 months to the end of March, the employer super segment saw FUM/A grow by 12.1 per cent to $136.1 billion, while personal super FUM/A grew by 9 per cent to $210 billion.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Bennelong Funds Management has signed a memorandum of understanding with US private credit manager Monroe Capital to distribute its products in Australia.
Global equity manager Talaria Capital has appointed a Sydney-based sales director as it grows its distribution presence across Australia.
Global private markets firm Partners Group has launched an evergreen fund to provide Australian advisers with access to its cross-sector royalties strategy.
Franklin Templeton has reduced fees for two of its Brandywine fixed income funds and enacted a name change for its Global Income Optimiser fund.
