FUM breaks through $1.4 tr
Tuesday, 16 March 2010 12:15pm
By Alex Dunnin | In Investment
Assets managed by investment managers has broken through the $1.4 trillion barrier again after climbing 12.8 per cent in 2009 and returning to where it was 18 months ago, according to new research from Rainmaker.
"This is the third consecutive quarter of FUM growth, confirming how the FUM market is returning to normal after the shock of the GFC. This quarterly growth is about the long-term average quarterly growth experienced over the past decade," noted Rainmaker.
Despite the dramatic recovery, Rainmaker said the market is still down 11 per cent compared to its December 2007 peak when it reached $1.6 trillion.
The fastest growing sectors were Australian equities, indexing and boutique funds management and the fastest growing managers were Solaris, Bellwether, Aberdeen, Jaguar and Denning Pryce.
Rainmaker's research also revealed that the growth in actively managed FUM is continuing to lag the growth in indexing by a factor of four to one, e.g. indexing FUM grew 37 per cent while active FUM grew only 9 per cent.
The result is indexing is now at its strongest point ever with 16 per cent of the overall investment market.
Meanwhile, the cash weighting across the FUM market has fallen further to 13 per cent. The absolute amount of cash is still, however, extremely high in historical terms at $190 billion, though it's down 5 per cent during the year and down 11 per cent during the quarter.
Rainmaker said the Future Fund Management Agency is still going from strength to strength now being the second biggest manager overall, the biggest institutional manager, the biggest user of sub-advisory, the biggest Australian fixed interest manager and the third biggest cash manager. But in a major surprise, they are the biggest user of hedge funds in Australia, noted the researcher.
This story was found at: http://www.financialstandard.com.au/news/view/28304
Printed: Tuesday, 7 February 2012 9:24pm