The actuary and research firm said while wholesale funds did experience an increase in growth of $11.5 billion, the growth rate was “relatively modest” at 1.8 per cent as investment markets begin to show signs of “topping out following two years of bull market conditions”.
During the March quarter gross inflows to wholesale funds fell 29.3 per cent but were still up at 17.5 per cent over the 12-month basis.
The Plan for Life research also showed that institutional wholesale business has increased 28.7 per cent in the past year and now accounts for 54.6 per cent of the overall wholesale market.
According to the data, State Street Global Advisors, MFS Investment Management, National Australia Bank/MLC, Commonwealth Bank/Colonial, Franklin Templeton Investments, Perpetual and Vanguard Investments all recorded double-digit annual growth rates.
Plan for Life also released analysis on retail managed funds, which indicated a 14.2 per cent growth to $657.8 billion during the 12 months to the end of March.
The growth rate for retail managed funds was just 1.1 per cent for the March quarter, however.
Managed funds also experienced a drop in inflows during the March quarter, with inflows declining 13.2 per cent to $44.6 billion
Inflows for managed funds were positive at 21.3 per cent for the 12 months leading to the end of March.
Plan for Life said “all of the main superannuation, retirement income and unit trusts and investment funds markets recorded significant double-digit percentage annual inflow growth”.
