Retail managed funds ended the year to March up 12.3 per cent, totalling $574.5 billion. That included 4.5 per cent of growth in the recent March quarter alone.
However, the Plan For Life analysis pointed out that the previous financial year included a correction due to the “sell in May and go away” syndrome, which Asset International/Plan For Life consultant Will Matthews told InvestorDaily is likely to be a factor again this year.
The results were mostly due to market performance rather than inflows, Mr Matthews added.
“You’ve got a big pot of gold there and it’s the earnings on that driving it rather than increases in cash coming in,” Mr Matthews said, adding that superannuation provided the exception, guaranteeing cash flows coming in every quarter.
However, it is important to note that quarterly figures are subject to annual fluctuations, he continued. For example, gross inflows fell 13.0 per cent to $39.6 billion in the quarter, but this was actually a slight 0.5 per cent year-on-year increase.
Overseas markets have fared better, according to the report, particularly the US and Japan which continue to be supported by “quantitative easing/money printing programs”.
“At the moment, when you really look at these investment markets, you have to wonder what on earth is going on,” Mr Matthews said.
“The Nikkei soars, and is incredibly volatile now. The Yen collapses, the US gets the same thing, but their market has stood up well compared to ours.”
Of the large retail managers in Australia, AMP, IOOF, CBA/CFS, Macquarie, NAB/MLC and BT reported double digit annual FUM growth rates.
Market shares remained steady, with BT still in front with 18.8 per cent or $108.1 billion in retail FUM.
AMP remained in second place, with 17.2 per cent ($98.9 billion), followed by CBA/CFS (15.5 per cent or $88.8 billion), NAB/MLC (15.2 per cent, $87.5 billion), OnePath (7.9 per cent, $45.3 billion), Macquarie (5.1 per cent, $29.1 billion) and IOOF (4.9 per cent, $28.2 billion).
