Uptick in managed funds growth may come undone
Retail managed funds increased 4.5 per cent in the March quarter, leading to a 12.3 per cent increase over the year to March to reach $574.5 billion, according to the latest data from Plan for Life Actuaries and Researchers.
Investment earnings were behind the increase as gross inflows fell by 13 per cent in the March quarter to $39.6 billion and increasing 0.5 per cent year on year. The flat result was due to a 19.3 per cent fall in cash trust inflows, offsetting increased inflows into superannuation, retirement income and unit trusts and investment funds markets.
Inflows into the investment bond sub-market - a small proportion of the overall market - were down 21.7 per cent.
AMP, IOOF, Commonwealth/Colonial, Macquarie, National Australia/MLC and BT all reported double-digit growth rates, as did State Super Financial Services which grew 24.2 per cent.
AMP’s 21.8 per cent growth rates were boosted by its purchase of the Cavendish SMSF business in the second half of 2012.
However, Plan for Life warned that the “sell in May and go away” syndrome had been delayed by a few weeks into June, so that all of the positive Australian market performance achieved in the June quarter so far may come undone - much the same as in 2012.
Overseas markets were performing better, particularly the US and Japan which were buoyed by large amounts of quantitative easing and money printing by their respective governments.
Recommended for you
The use of active ETFs in model portfolios by financial advisers is a key factor in the growth of the products for iShares, according to BlackRock.
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
Flows into cash and fixed income ETFs soared in May, rising from $366 million in April to more than $1.3 billion, data from Betashares shows.
Quinbrook Infrastructure Partners has promoted its Australian head to the role of chief executive of the global investment manager.
