Managed fund FUMA passes $1 trillion mark


By Elizabeth Somerville

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Funds under management and advice (FUMA) held by retail and wholesale managed funds have surpassed the $1 trillion mark for the 12 months to June, research from DEXX&R has shown.

This was an increase of 12.2 per cent in FUMA from last year, driving up the total by $109 billion, from $894 billion in 2013, with the top five retail and wholesale managers leading the way.

“The top five have almost an unassailable position,” DEXX&R managing director Mark Kachor told financialobserver.

“Looking at a market with about 70 participants, it really flattens out once you get below the top six or seven.

“It’s all driven by distribution, [and] institutions have the lion’s share,” he said, adding that “it would take a very long time to dislodge them from their position of dominance”.

National Australia Bank (NAB) dominated the top five retail and wholesale managers with a recorded increase of 16.4 per cent or $19.8 billion, up from $120.8 billion to $140.6 billion over the 12 months to June 2014.

Commonwealth Bank of Australia (CBA) recorded a boost of 13.5 per cent to $132 billion.

The research also showed an 11.8 per cent increase for Westpac to $124 billion over the period, while Macquarie was up 15 per cent to $70 billion.

“The strong growth over the past 12 months was driven by positive investment returns and increased inflows into the retirement incomes, superannuation and retail investment segments,” DEXX&R said.

The employer super FUMA category saw an overall increase of 12.7 per cent, up to $125.4 billion as at June 30, with NAB also on top in this category.

Its employer super FUMA recorded a rise of 18.3 per cent to finish at $28.5 billion at June 30, up $4.4 billion from last year.

In the personal super category, Westpac recorded the strongest increase of the top five, with a 14.7 per cent rise in FUMA, which resulted in a $29 billion gain.

AMP and CBA both recorded a 9.7 per cent boost in FUMA to $41 billion and $35 billion respectively over the same period.

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