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Masterfund FUM climbs $94.3bn in 2013

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During 2013 the overall masterfund business rose 20.1 per cent or $94.3 billion up to $564.3 billion, according to an analysis by Plan for Life (PFL).

The analysis indicates masterfunds increased 4.2 per cent in the December quarter alone due to strong investment markets resulting from quantitative easing and low interest rates. 

There were $146.9 billion in inflows in 2013, an increase of 25.2 per cent from the $112.5 billion of inflows the previous year. 

All major companies experienced significant growth in their funds, with Macquarie experiencing the largest increase in funds under management, with a 52.2 per cent rise, followed by Commonwealth Bank and Colonial, with a 23.2 per cent increase, and AMP with growth of 22.9 per cent.  

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Wraps experienced the largest increase of all categories in the masterfund market, with funds under management increasing 29.8 per cent in the past year. 

Inflows were $86.3 billion while outflows were $56.6 billion resulting in net fund flows of $27.7 billion. 

AMP holds the greatest volume of funds under management in the wrap category, with $40.1 billion, followed by Macquarie with $38.4 billion.

Platforms, which account for the largest segment of the masterfund market, rose at a rate of 15.5 per cent during 2013.

Although total inflows were $49.1 billion, this was largely offset by outflows of $48.6 billion, resulting in a net fund flow of just $0.5 billion. 

National Australia Bank and MLC hold the largest amount of funds under management in the platform category, with $68.8 billion, followed by the Commonwealth Bank and Colonial with $64.4 billion. 

Master trusts rose 12.2 per cent during 2013. Similar to platforms, the $11.5 billion of inflows were mostly offset by outflows of $10.2 billion, resulting in net fund flows of $1.4 billion. 

AMP holds the largest share of funds under management in this category, with $24.4 billion, followed by BT with $23.7 billion.