There were at least five platforms that saw significant increases in retail managed funds in the last financial year, according to research house Plan for Life (PFL).
The firm’s analysis surveyed the funds under management (FUM) in retail managed funds at various platforms during the June 2023 quarter and the FY2022–23.
Total FUM in retail managed funds rose 2.3 per cent during the quarter to end the financial year up by 7.3 per cent.
In the top spot for annual FUM growth, Mercer saw funds more than double with a rise of 131.5 per cent in FY23, credited to the $35 billion worth of business transitioned by BT. Most of this occurred in the last quarter when Mercer’s FUM rose by 105 per cent.
On the flip side, the deal meant BT’s FUM decreased by 20 per cent on an annual basis and 21.2 per cent on a quarterly basis.
BT Financial had seen a busy 2023, exiting its superannuation business by selling to Mercer in April and exiting BT Advance Asset Management, also to Mercer. Its $1.9 million Private Portfolio Management business, an individually managed account (IMA), is expected to transition to Mercer in the fourth quarter of 2023.
Other double-digit increases were recorded by HUB24 (26.2 per cent), Netwealth (22.1 per cent), Macquarie (17.3 per cent) and Praemium (14 per cent).
Insignia and Commonwealth/Colonial First State, which held the first and second spots for total FUM at $208 billion and $128 billion respectively, posted moderate annual increases of 4.4 per cent and 6 per cent respectively.
AMP was the only other platform alongside BT to report an annual loss, with losses of 8.5 per cent although it saw a small 2 per cent gain in the last quarter.
“After a positive year on investment markets, asset values are again under pressure as financial regulators realise to control inflation they must ensure sustained positive real interest rates going forward and jettison the cheap money experiment of the past decade,” PFL noted.
Five largest annual growth in FUM:
| Firm | Annual growth |
| Mercer | 131.5% |
| HUB24 | 26.2% |
| Netwealth | 22.1% |
| Macquarie | 17.3% |
| Praemium | 14% |
Source: PFL, Sept 2023
Interestingly, year-on-year gross inflows jumped to $224.5 billion, marking a 17.3 per cent increase.
Previously, funds under management at wraps, platforms and master trusts declined to $982.5 billion, decreasing by $19.5 billion, or 1.9 per cent, as at the end of March 2023.
