Fund inflows into the superannuation sector grew by a whopping 120.8 per cent for the June quarter, according to the latest statistics from Plan for Life Actuaries and Researchers.
The research firm attributed this increase to the one-off initiative by the Government to invest $1 million tax free into superannuation.
Macquarie gained most from the initiative, growing its superannuation business by 71.3 per cent. St George grew by 62.1 per cent, Aviva by 55.1 per cent, Commonwealth/Colonial by 44.5 per cent and MLC by 40 per cent.
Overall, Australian retail funds grew their business by 22.5 per cent in the year to June 2007 to $589.6 billion under management.
Again, the Government's initiative spurned the growth with a 41.5 per cent jump in gross inflows for the June quarter.
The major wealth management firms all experienced an increase in their retail business with Macquarie leading the way with a 43 per cent jump in fund inflows.
The merger between Australian Wealth Management and Select Managed Funds in May 2006 pushed the business into second spot. Inflows for the group grew by 28.6 per cent.
St George grew by 28.4 per cent, Aviva by 24.4 per cent, Axa Australia by 21.3 per cent and MLC increased business by 20.7 per cent.
