Actuarial and research firm Plan for Life has reported another bumper year for the Australian funds management industry with both wholesale and retail sectors growing by close to 20 per cent.
According to the Plan for Life data released last Friday, the retail managed funds industry grew by 17.8 per cent during the 12 months to June 30 this year. However, the growth of the retail funds industry slowed somewhat in the June 2006 quarter with the market expanding by only 1.6 per cent. Over the same annual period the wholesale fund market grew by 20.9 per cent but recorded a drop of 2.1 per cent (or a loss of $6.2 billion) during the June quarter. “One major factor in the apparent drop in wholesale funds under management in this latest quarter was the reclassification by Asgard/St George Bank of its wholesale funds, which were previously managed by Advance Asset Management, as now being retail business managed by Asgard,” Plan for Life said in the report. In the retail funds sector Mercer Investment Nominees experienced the highest growth over the year adding (27.6 per cent to its funds under management. Runners-up in the annual growth stakes were Macquarie (24.4 per cent), Asgard /St George Bank (23.7 per cent) and AMP (21.7 per cent). Plan for Life said gross retail inflows for the year to June stood at $225.6 billion, a 14.8 per cent increase on the previous 12 months. Gross inflows increased 19.1 per cent in the June quarter. The big winners over the year in gross flows were Adelaide Managed Funds, Macquarie and AMP all of whom reported inflow growth of over 20 per cent.
The brunt of losses from the LA wildfires are expected to be borne by primary insurers and high-risk reinsurance programs, but super funds are nevertheless closely monitoring the possible impact of the fires on catastrophe bond and insurance-linked securities exposures.
Simon HoyleJanuary 17, 2025
