CBA, BTIM report flat FUM

Investors exit cash over December quarter

By Vishal Teckchandani
Mon 08 Feb 2010

Investors redeeming from cash and fixed interest funds were a key driver behind fund managers' flat FUM over the December quarter.

Several major wealth managers have reported flat funds under management (FUM) for the December quarter, partly due to investors pulling money from cash and fixed interest funds.

Commonwealth Bank of Australia (CBA), the country's biggest lender by market value, said total FUM over the three months rose 1 per cent to $149 billion.

While the group's Australian equities FUM gained 5.5 per cent to $23 billion and global equities FUM jumped 7.6 per cent to $42.72 billion, outflows from short-term cash mandates impacted overall gains.

CBA's FUM in cash and fixed-interest products slid 4.3 per cent to $59.19 billion while property and infrastructure FUM saw a 0.4 per cent dip to $24.09 billion.

BT Investment Management (BTIM), the fund manager 60 per cent owned by Westpac, reported total FUM of $36.2 billion as at 31 December, up $200 million from 30 September.

BTIM experienced $500 million in outflows from cash and fixed interest and a further $200 million in outflows was attributable to capital returned to investors within the BT Global Return Fund, which is currently being wound up.

But the fund manager saw $300 million of inflows into equities.

Perpetual's FUM was $29.3 billion at December, unchanged from the end of the previous quarter.

The group said in November it experienced net outflows of $170 million from an institutional client in cash, and quarterly mortgage fund redemptions of $65 million.

Platinum Asset Management's FUM ended December at $17.07 billion, 6.3 per cent higher than the $16.06 billion reported for September.

The All Ordinaries Index rose 3 per cent in the December quarter while the MSCI World ex-Australia Index in Australian dollars added 2.90 per cent over the same time.

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