Major Australia-based wealth managers have reported a jump in funds under management (FUM) in the June 2009 quarter, as global stock markets surged on optimism the economic downturn is abating.
Commonwealth Bank of Australia (CBA), the country's biggest lender by market value, said total FUM rose 8 per cent over the three months to $138 billion.
Specifically, the group's Australian equities FUM increased 9.4 per cent to $17.74 billion while global equities FUM surged 18.6 per cent to $35.70 billion.
The group's FUM in cash and fixed-interest products crept up 6.5 per cent to $61.4 billion while property and infrastructure FUM saw a 2.7 per cent decline to $23.36 billion.
In a trading update yesterday, National Australia Bank (NAB) said net flows in its wealth management division MLC were strong in June, reflecting both investors returning to the market and seasonality associated with the end of the tax year.
"The combination of positive market returns and positive net flows has increased funds under management to $75 billion at 30 June 2009 from $70 billion at 31 March 2009," NAB said.
BT Investment Management, the fund manager 60 per cent owned by Westpac Banking Corporation, last week reported total FUM of $32.2 billion as at 30 June, up 5.22 per cent on the $30.6 billion it had on 31 March.
Platinum Asset Management reported FUM of $13.965 billion at the end of June, 2.75 per cent higher than the $13.59 billion in the previous quarter.
"The last quarter of the financial year saw market sentiment turn around, which resulted in most asset classes, in particular equities, having positive returns which would obviously have a positive impact on these FUM numbers," Morningstar consultant Sallyanne Cook said.
