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
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
Frontier Advisors has bolstered its Japanese footprint through a partnership with the $350 billion asset management arm of Nippon Life Insurance Company.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
