Just ten products received almost half the record superannuation inflows for the June quarter this year, according to a Citigroup report on wealth management trends.
Super wraps and cash management trusts dominated the ten products that collected 46 per cent of the record $15.7 billion poured into super before June 30, the deadline for tax-free contributions into super of up to $1 million. The top ten products took only 35 per cent of inflows for the same period last year. “Players with product offerings pitched to the more affluent and high net worth segments performed better than those with a more mass market positioning,” the report, titled ‘Trends in Wealth Management’ and credited to Citi Investment Research, said. Australian Wealth Management’s fund, Spectrum Super SMF Funds Management, topped the list taking $1.32 billion. BT’s SuperWrap cash fund took the second highest inflow with $1.23 billion. BT’s share, along with the two other cash funds that made it to the top ten products – Macquarie’s ADF Super Deposit fund and FirstChoice Wholesale Personal Super Cash – saw $2.2 billion allocated between them. The same three products took just $0.4 billion in the June quarter of 2006. However, the report said the high level of funds in cash will drop, as they were placed there to beat the June 30 deadline. Most of those funds are expected to be reallocated to growth assets after more informed decisions are made on where to invest. The other products to make the top ten are Macquarie Wrap Solutions’ Super Manager, Aviva Navigator Super / Rollover, Asgard eWRAP’s Super, NAB/MLC MasterKey Custom Super, Asgard Superannuation Account and AXA iAccess’ Super.
Despite a prevailing belief to the contrary, super funds that have internalised investment management often terminate their own teams and strategies faster than they would an external manager, according to research house Chant West.
Lachlan MaddockMarch 18, 2025
