The latest platform and wrap analysis from Plan for Life shows overall masterfund business increased by $51.4 billion or 8.3% during 2015, now standing at more than $672 billion.
Plan for Life said masterfunds climbed $31.2 billion or 4.9% in the December quarter on the back of "positive, if at times wobbly, investment markets supported by unprecedented stimulatory low interest rates." The firm added that market choppiness has continued in early 2016.
Masterfund inflows of $133.5 billion were down 11.6% in 2015 after cumulatively jumping by almost a third over the previous two years. Corresponding outflows in 2015 were down 12.7% from $126.3bn to $110.3bn.
All major companies reported growth in their funds under management led by Macquarie (38.9%), Commonwealth/Colonial (7.1%), AMP (6.9%) and BT (6.8%). Macquarie's large jump was mainly due to an internal transfer of $10.4 billion of assets they previously managed outside of their reported retail business into the Macquarie Wrap Solutions platform.
Wraps now account for 41.6% of the overall masterfunds market, at $279.9 billion in funds under management, and up 15.2% over the past year. Macquarie ($57.8 billion), AMP ($51.6 billion), BT ($43.7 billion) and National Australia Bank/MLC ($28.9 billion) dominate the wrap market accounting for almost two-thirds of the overall total. Plan for Life said from an administrator point of view, wraps are even more concentrated with BT ($102.7 billion) alone being responsible for close to 37% of the wrap total.
Platforms now account for 43.8% of the masterfunds market, at $294.6 billion FUM. This also increased during 2015 but at the much more modest rate of 2.9% with all of the increase being due to investment earnings. Commonwealth/Colonial ($74.9 billion), NAB/MLC ($73.5 billion), AMP ($55.2 billion), IOOF ($29.8 billion), ANZ ($22.1 billion) and Mercer ($19.7 billion) lead the platform market.
The market share of master trusts climbed 6.8% over the past year to 14.5% or $97.7 billion FUM. BT ($28.1 billion) and AMP ($27.4 billion) dominate the Master Trust market and account for about 57% of the total.