The total Australian masterfunds market grew more than 10 per cent to $451.1 billion in the 12 months to September 2012, while the total exchange traded funds market grew 16 per cent to $5.8 billion, new data from Plan For Life has revealed.
Most of the growth in the masterfunds market was due to performance, with net flows of just $7 billion.
Year on year inflows dropped slightly to $110 billion, with outflows up slightly to $103 billion.
The masterfunds market had contracted in the previous 12 months but rebounded in 2012, growing $45.6 billion – $27 billion of that in the September 2012 quarter.
The largest growth was seen in the wraps segment of the market, which makes up 35.4 per cent of the total market and saw positive net flows of $7.5 billion and total growth of $20 billion.
This was in contrast to the platforms space which was boosted by strong market performance but saw negative net flows of $3.6 billion.
All the major providers boosted their platforms funds under management (FUM) but the biggest mover was AMP, which grew more than 20 per cent to $81.5 billion. This shifted the group into second place past NAB/MLC, which saw its overall market share contract slightly despite growing almost $4 billion to $77 billion.
BT retained its place as the largest provider and maintained a 20.6 per cent market share, growing almost $9 billion to $92.8 billion.
CBA/CFS grew almost $9 billion to $64.7 billion to remain as the fourth largest provider with a 14.3 per cent market share.
OnePath (up $2 billion to $34.9 billion; 7.7 per cent market share), Macquarie (up $2 billion to $26 billion; 5.8 per cent market share), IOOF (up $1.7 billion to $22.6 billion; 5 per cent market share) and Mercer (up $1.6 billion to $16.1 billion; 3.6 per cent market share) each had solid year to maintain their market position.
Meanwhile the Australian ETF and exchange traded commodities (ETC) market grew 16 per cent to $5.8 billion in the 12 months to September 2012.
State Street is still the dominant provider with close to half of the market (up $150 million to $2.7 billion), but iShares, Vanguard and BetaShares each saw strong growth from a lower base.
iShares grew by a third to $1.34 billion and now controls 23 per cent of the market. Although Vanguard ETFs grew by 55 per cent to $500 million it remains the fourth largest provider after ETF securities (down 1.2 per cent to $745 million).
BetaShares doubled its ETF FUM to $266 million and is now the fifth largest ETF provider in Australia.
