Retail investments have posted their first quarter of positive cash flow since September 2007, with a net cash flow of $1.2 billion recorded for the June 2013 quarter according to data released by Dexx&r.
The growth of the retail investment sector, excluding superannuation investments and dependent on discretionary investment, has languished after the global financial crisis with investors focusing on cash and low risk investments, according to Dexx&r.
The research group stated that the return to positive inflows in the retail investment sector might be due to discretionary investments being directed outside of superannuation due to the lower cap on super contributions of $25,000.
Total funds under management (FUM) in the retail investment (non-super) segment increased by 5.8 per cent or $7.5 billion to $136 billion at June 2013, up from $129 billion at March 2013.
During the June quarter total retail and wholesale FUM increased by 2.1 per cent or $18.4 billion to $896 billion at June 2013, up from $878 billion at March 2013.
Over the 12 months to June 2013, FUM held by both retail and wholesale managed funds increased by 14.3 per cent or $112.4 billion, up from $784 billion in June 2012 to $896 billion at June 2013.
Dexx&r said this growth was driven by increased inflows into the superannuation and retirement incomes segments and the positive cash flow quarter in the retail investment segment.
Personal super FUM increased by 12.3 per cent, or 19.6 billion for the 12 months to June 2013.
Over the June quarter FUM in this segment increased by 2.1 per cent to $178 billion at June 2013, while FUM in the retirement incomes segment increased by 2.8 per cent to $132 billion at June 2013.
