Despite earlier fears a shakeup in superannuation would affect its revenue, global fund administrator Mainstream recorded $172.8 billion in funds under administration (FUA) at the end of June, 24 per cent up from the prior year.
Mainstream’s FUA rose by $10 billion or 6 per cent from the previous quarter. The business reported “strong organic growth” in its Asia-Pacific and US arms.
The number of funds it now administers sits at 1,012, increasing by 24 per cent year-on-year and 53 funds up from the prior quarter.
“Fund closures were more than offset by new funds including 36 additional US private equity funds and 19 new funds under custody,” Mainstream noted.
The administrator added the growth in the quarter had been driven by market movements of $6.1 billion and net inflows from clients of $3.9 billion.
Mainstream had downgraded its full year revenue guidance in June, saying its superannuation segment would be challenged by increased regulation and merger mania between funds.
Chief executive Martin Smith said during a period of industry change and market volatility, Mainstream has continued to grow its business.
“Our global growth strategy is well diversified across regions as well as asset classes. These numbers also demonstrate the growth in scale and reputation of our operations,” Mr Smith said.
“Our funds under administration grew by $34 billion or 24 per cent this year, compared to five years ago when our funds under administration totalled that amount.”
The company now has 356 clients, having gained one in the past quarter, or 16 in total in the first half of the year. The number is 13 per cent up year-on-year.
Mainstream said it was probably a result of some small client exits offsetting new clients.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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