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.
Recommended for you
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
Online investment adviser and fund manager Stockspot has introduced Stockspot Super, Australia’s first 'ETF only' superannuation product. superannuation product.
ASIC has called on superannuation funds to improve their oversight of advice fee deductions following an investigation of 10 trustees that found $990 million was charged in one year.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.