Masterfund FUM up $55bn in 2014

The research house said masterfund business grew $55.2 billion to $620.2 billion in 2014, climbing $23.1 billion during the December quarter alone.

Plan For Life said the growth during the December quarter occurred “off the back of buoyant” and at times “nervous and wobbly” investment markets that were supported by “unprecedented stimulatory low interest rate policies” of governments worldwide.

Major companies, Plan For Life said, all reported growth in funds under management (FUM), with Commonwealth/Colonial growing 12 per cent, AMP up 11.7 per cent and BT growing 11.1 per cent.

The research house also found wraps experienced a growth of 13 per cent for the year.

“AMP ($48.1 billion), BT ($41.7 billion), Macquarie ($40.7 billion) and National Australia/MLC ($28 billion) dominate the wrap market, accounting for close to [two-thirds] of the overall total,” Plan For Life said in a statement.

“From an administrator point of view, wraps are even more concentrated, with BT ($95.7 billion) alone being responsible for almost 40 per cent of the wrap total.”

Platform funds also increased throughout the year, albeit at a more moderate rate of 6.5 per cent with the increase being virtually a result of investment earnings, Plan For Life said.

“Annual inflows were $59.2 billion (39.5 per cent) but these were almost all offset by outflows of $58.9 billion (46.9 per cent), resulting in a net fund flow of only $0.3 billion (1.1 per cent).

“National Australia/MLC ($72.5 billion), Commonwealth/Colonial ($71 billion), AMP ($54.5 billion), IOOF ($29.2 billion), OnePath ($22 billion) and Mercer ($19 billion) [all led] the platform market.”