Growth flat in managed funds


By Sarah Kendell

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Growth in the retail managed fund market was flat in the third quarter of 2017, with independent platform providers continuing to outstrip the incumbents in terms of inflows, according to new statistics from Strategic Insight.

The research firm’s data showed that funds under management in retail managed funds increased by just 0.8 per cent in the three months to September 2017, a rise that was attributable entirely to market movements rather than new money flowing into platforms.

However, the sector grew by 8.2 per cent in the 12 months to September, with independent platform provider netwealth growing at a rapid 49 per cent over the course of the year, although the research firm noted that this was from a low base.

Macquarie saw 9.6 per cent growth in funds under management to its platform, while Colonial recorded 7.7 per cent and BT also saw a 7.7 per cent increase.

Funds under management across the retail market rose 18.8 per cent year on year, while retail superannuation funds saw a 19 per cent increase in inflows.

Meanwhile, inflows to unit trusts and investment funds were boosted by 39.9 per cent, while the investment bond market benefited from investors looking for an alternative to super in light of new contributions caps, seeing a 5.8 per cent increase in inflows.

Total funds under management across the retail sector were $855.5 billion at the end of the September quarter, Strategic Insight said.

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