$12.2bn yearly growth in retail managed funds

Its analysis of retail managed funds as at the end of September 2018 found the overall market totalling $946.4 billion.

Quarter-to-quarter, Strategic Insight found that the market saw a modest rise of 1.3 per cent thanks to positive performances on underlying investment markets, however net flows were slightly negative.

“Unfortunately, since then there has been a significant, and as of publication date ongoing, correction on stock markets that has seen them shed 10 per cent or more in value to wipe out all of the past year’s gains,” it said.

“All major participants in the retail market posted increases in funds led by Netwealth (39.1 per cent), off a low base, Macquarie (16.7 per cent), Mercer (9.1 per cent), BT (8.7 per cent) and Commonwealth/Colonial (8.1 per cent).”

Year-on-year inflows fell 6.4 per cent to $178.6 billion while during the September quarter they were off 2.9 per cent, according to Strategic Insight’s analysis.

Further, it noted the superannuation and retirement income markets saw inflows drop 20.8 per cent and 13.2 per cent, respectively, while by contrast those of the other main sub-market of unit trusts and investment funds were up 13.2 per cent.

Meanwhile, reported inflows into the much smaller cash trusts and investment bonds markets also climbed by 18.4 per cent and 12.8 per cent.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].