Investment
Masterfunds up $26 billion

The final quarter of 2019 saw Australian funds under management on platforms jump by $26 billion.

According to Plan For Life Actuaries, masterfunds ended the year to 30 September 2019 up 3% - amounting to $26 billion. Total FUM for masterfunds now stands at $887.8 billion.

However, during the September quarter there was a blip; FUM declined by $4.3 billion, or a marginal 0.5%.

However, Plan For Life said these results were after the once-off transfer of $18.6 billion worth of StatePlus Masterfund business to First State Super, a public sector super fund, adjusted for this the underlying annual and quarterly growth rates are 5.2% and 1.6%.

Investment earnings on underlying assets over the past year accounted for the increase in funds.

Year on year while reported inflows into masterfunds rose 4.6% to $157.9 billion they were exceeded by corresponding outflows that jumped 16.5% to $164.6 billion.

The growth in FUM was led by netwealth which has 31.3% boost, Xplore Wealth had the next best year for FUM growth with 8.8%, IOOF saw an 8% increase and Commonwealth/Colonial saw 5%.

There was more modest growth at Macquarie (4.3%), Mercer (4.2%) and BT (3.7%).

Wraps now account for $414.2 billion of FUM from the total masterfunds market, up 8.8% over the past 12 months with inflows of $96.6 billion.

Platforms ended the year up 6.5% however that was due to investment earnings as inflows of $46 billion were exceeded by outflows of $60.1 billion.

FUM in master trusts decreased by 21.6% due to the StatePlus transfer, excluding this numbers would have been up by less than 1%.

The top three master trust providers are BT ($36.2 billion), AMP ($31.6 billion) and ANZ ($20.1 billion) and between them control 81% of the market.

Read more: BTStatePlus MasterfundANZFirst State SuperIOOFMacquarieMercerXplore Wealth
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