Commonwealth Financial Services has topped the ASSIRT quarterly inflow tables for the third time in succession, thanks largely to huge inflows into its cash management trust (CMT).
Inflows into the Commonwealth’s CMT made up nearly two-thirds of its $663 million in total quarterly inflows in the quarter to December 1998, placing the Commonwealth ahead of AMP at number two and Westpac at number three. The Commonwealth also performed strongly in sales of allocated pensions and annuities.
AMP recorded a strong increase in inflows, taking it from the number four position in the September 1998 quarter to number two in the December quarter.
The group recorded inflows of $580 million for the period compared to $399 in September.
Macquarie’s inflows for the quarter took a hammering, with the investment bank dropping out of the top 10 fund managers from its previous number seven-ranked position. The group’s CMT, the biggest in the industry, recorded a meagre $37 million in inflows in December compared to $280 million the previous quarter.
Overall, allocated pensions and annuities were the fastest-growing product segment for the December quarter. These products recorded more than $1.1 billion in inflows, more than double that for the September period. This is due to relaxations in the Federal Government’s asset-testing of these products on September 20 last year, which increased their attractiveness to retirees.
Unit trusts have descended from their previous lofty heights, recording inflows of $1.9 billion for the December quarter compared to $3.1 billion for the September period.
According to ASSIRT, the overall retail fund market increased 8 per cent in the quarter to reach $154 billion in funds under management. Overall net inflows for the December quarter were $3.6 billion, down 14 per cent on the September quarter figure of $4.2 billion.
Top 10 fund inflows
Company rank Dec qtr 1998 ($m) Year to Dec 1998 ($m)
1. Commonwealth 663 2629
2. AMP 580 1309
3. Westpac 426 2047
4. Mercantile Mutual 323 1483
5. ANZ 297 876
6. Lend Lease 211 809
7. BT 186 1439
8. NAB 182 1015
9. IPAC 117 586
10. Rothschild 81 300
Source: ASSIRT
