The wealth management arm of Commonwealth Bank Australia (CBA) has experienced strong retail and wholesale fund inflows during the June quarter.
Funds under management (FUM) at June 30, 2007 totalled $139.7 billion, up 17.7 per cent for the year and 6.8 per cent for the quarter.
While funds under administration (FUA) at June 30, 2007, was $177.1 billion. This is a 16.9 per cent boost for the year and a 7.1 per cent increase for the quarter.
“I think it’s been a very strong quarter in terms of FUM and FUA. I think the whole industry has had a strong quarter,” CBA wealth management group executive Grahame Petersen said.
The Colonial First State platform FirstChoice attracted strong retail funds inflow, growing 51 per cent over the year to $39.5 billion.
Petersen said half of Australia’s independent financial advisers used FirstChoice.
FirstChoice recently began offering margin lending, added 12 new investment options and launched a Generation Fund, which will be available in September.
Wholesale platform wrap Avanteos is almost $5.9 billion, which is up 14.3 per cent compared to the last quarter.
CBA hailed the quarterly FUA result a success, particularly in light of a one-off outflow of $7.1 billion from the Avanteos platform when funds were migrated back to Goldman Sachs JB Were and the run-off legacy products.
Petersen said international funds were becoming an increasingly important part of the business. The revamp of its global equities team has increased its performance.
FUA from internationally sourced funds grew 15.4 per cent to $39.9 billion in the last quarter.
