Post-retirement market outperforms super

While the retirement incomes market has continued to surge ahead in the three months ending December 2007, the superannuation market has dropped considerably, new data by research house DEXX&R has shown.

According to the data, total funds under management (FUM) in the retail and wholesale markets grew by 9 per cent to $966.5 billion in the year ending December 2007, but fell by $12.4 billion in the final quarter — offsetting the $15 billion increase last September quarter.

The retail market grew by 10 per cent to $590.6 billion in the year ending December 2007, but fell 2 per cent in the September quarter.

The retirement incomes market experienced an increase of 36 per cent to $94.4 billion last year and was the only market to achieve positive growth (of 5 per cent or $4.4 billion) in the final quarter.

The employer and personal superannuation markets both fell in the final quarter, by $1.5 billion and $184 billion respectively. However, most of the top 10 companies, including AMP, Mercer, ING, Plum, BT and ColonialFirstState, outperformed.

The retail investment market also fell in the final quarter, dropping 3 per cent to $216.4 billion. However, Macquarie, which continues to lead the market in terms of size and growth, experienced growth of nearly 19 per cent, taking its FUM to $40.1 billion.

Total assets in the wholesale market (pooled superannuation and wholesale trusts) remained steady during the final quarter, however, its closing balance of $374.3 billion is slightly down on the September quarter’s $376.4 billion. The top five companies grew by more than 8 per cent to $375.9 billion in the final quarter, with AMP and Vanguard experiencing the highest relative growth.