Treasury Group has reported a 14 per cent rise in funds under management (FUM) for the 2011 financial year, as institutional clients returned to the market.
The backer of boutique fund managers said FUM rose to $16.76 billion over the 12 months, an increase of $2.06 billion.
During the period, Treasury Group's associated boutique fund managers experienced new net inflows of $787 million, most of which went to its RARE Infrastructure business led by Richard Elmslie and Nick Langley.
RARE's FUM ended the year at $4.22 billion, up from $2.58 billion in June 2010.
"The growth in FUM over the past 12 months has been mainly sourced from institutional clients," Treasury Group chief executive Andrew McGill said.
Boutique Orion Asset Management's FUM increased to $5.16 billion from $5.06 billion, while Celeste Funds Management's assets rose to $414 million from $287 million.
Treasury Group's other asset management businesses, including Investors Mutual (IML), Global Value Investors (GVI) and Treasury Asia Asset Management (TAAM), experienced a fall in FUM in the 2011 financial year.
Over the 12 months, IML's assets decreased to $2.60 billion from $2.88 billion, while GVI's FUM declined to $474 million from $551 million.
TAAM's FUM slid to $715 million from $1.09 billion.
"Based on industry data, retail investors are increasing their allocation to cash," McGill said.
Treasury Group, however, would continue to invest and support retail distribution, he said.
The S&P/ASX 300 Accumulation Index rallied 11.90 per cent in fiscal 2011, while the Vanguard International Shares Index hedged back to the Australian dollar jumped 26.91 per cent.
