A new report by the actuaries and research company found a 20.4 per cent increase in the wrap, platform and master trust managed fund markets over the year to September 2013, off the back of favourable economic conditions.
“Masterfunds ended the year to 30 September 2013 jumping 20.4 per cent or $91.6 billion to total $541.6 billion; during the September quarter alone they were up $31.3 billion, or 6.1 per cent” the report stated.
Breaking the $541.6 billion into sectors, wraps accounted for $203.6 billion (up 28.4 per cent over the past 12 months), platforms represented $261.1 billion (up 17.9 per cent) and master trusts accounted for $77 billion (up 9.9 per cent).
“All of this substantial growth was on the back of strong underlying investment markets bolstered by the fiscal stimulus and easy money policies being pursued by governments worldwide as they try to address serious and well-founded concerns about high unemployment,” said the report.
The major service providers – listed as Macquarie, Commonwealth/Colonial First State, NAB/MLC and IOOF – fared especially well, all reporting “double digit percentage increases” in their respective masterfunds businesses.
Year on year inflows into masterfunds were “up very significantly” by 31.3 per cent to $138.2 billion, while corresponding outflows rose by “a more modest” 9.3 per cent to $109.9 billion, the report stated.
BT Financial Group continues to hold the largest share of the market at $107 billion, although it has slipped from 20.4 per cent of the market to 19.8 per cent.
