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.
