The retail managed funds sector climbed $8.9 billion during the December quarter 2010 to $512.7 billion, representing growth of 1.8 per cent, according to the latest Plan for Life research.
While the findings indicated the overall result for retail managed funds for 2010 was down by 1 per cent, the report said the negative result for the sector was partly due to a transfer out of the very large Macquarie Cash Management Trust into the banking system during the September quarter.
“If that had not occurred, then retail funds’ overall growth for the year would have actually been slightly positive at 1.7 per cent,” the report noted.
The Plan for Life research found the 2010 results of most companies were generally fairly flat, with Mercer and AMP reporting the highest percentage increases of 6.4 per cent and 3.7 per cent respectively in their FUM.
“The gross inflows for 2010 totalled $168.2 billion, down 21 per cent year on year. During the December quarter alone they were off 7.4 per cent. BT, Commonwealth/Colonial and AMP reported the highest 2010 inflow growth rates,” the report said.
The research indicated there was a 2.2 per cent increase in superannuation funds during the December quarter, while over the past year they were also up by 2.9 per cent.
“Most major companies managed to report at least some, albeit in many cases slight, growth in their superannuation business, with Mercer, BT, AMP, National Australia/MLC and OnePath Australia among the better performers,” the report said.
Overall gross inflows into superannuation increased 4.6 per cent year on year despite a 16.2 per cent fall in the latest quarter.
“BT (23.2 per cent), Commonwealth/Colonial (13.3 per cent), IOOF (13.2 per cent) and Mercer (11.1 per cent) all reported double-digit percentage increases in their annual gross inflows, while by contrast both Axa Australia (-21 per cent) and OnePath (-20.2 per cent) saw theirs fall,” the report said.
