Institutions report increased FUM/A in 2014

Research house DEXX&R found within its Analysis Market Share Report that the increase in FUM/A has added $80 billion to the previous year’s figure of $939 billion, resulting in an increase to $1.02 trillion.

“In the retail market the strongest growth in FUM was recorded in the retirement incomes segment, with an 11.8 per cent increase in FUM and in the retail investment segment with a 7.9 per cent increase in FUM,” a statement from DEXX&R said.

It also found the financial institutions contributed heavily to that growth figure, despite increased parliamentary and media attention to vertical integration.

“Of the top five retail and wholesale managers, NAB’s FUM/A increased by 9.5 per cent – $12.2 billion, up from $129.1 billion to $141.3 billion over the 12 months to September 2014,” it said.

“CBA recorded an increase of 9.3 per cent to $134 billion, Macquarie an 8.4 per cent increase to $70 billion and AMP an 8.3 per cent to $129 billion over the 12 months,” DEXX&R said.

DEXX&R also found that in the employee super segment nine per cent of total FUM/A is now held in the MySuper option, up from seven per cent from June 2014.

“As at September 2014 32 per cent of total FUM continues to be held in default options compared to 33 per cent in the previous quarter,” DEXX&R said.

“Other investment options including multi-sector, Australian shares and overseas investments account for 59 per cent of total FUM/A, a small decrease from 60 per cent as at June 2014,” it said.