Netwealth top for FUM growth

New research from Plan For Life Actuaries & Researchers has revealed Netwealth is growing much faster than some of its more established competitors.

The research found a total $37.7 billion rise in funds under management over the year to June 2019 for wraps, platforms and master trusts.

The masterfund market overall was up 4.4% this year to a total of $885.9 billion by 30 June 2019, experiencing overall growth despite a market correction in late 2018.

Inflows to masterfunds were slightly up (1.9%) but outflows jumped 17.1% from $135 billion to $158 billion.

In percentage terms, Netwealth experienced the most growth in funds under management (29.9%), followed by Macquarie (18.1%) and BT (14.4%).

Much more modest growth in masterfunds was reported at AMP (2.4%), National Australia Bank/ MLC (1.6%) and Commonwealth/Colonial First State (5.3%).

Wraps made up 45.1% of the total masterfunds market with $399.3 billion in funds under management and experienced 7.3% growth over the year.

AMP had the biggest wrap growth (19.7%) followed by BT (16.9%) and Macquarie (11.6%). However, BT still dominates the market from an administrator point of view with its share jumping to 31.4%.

Platforms make up a further 40.8% of the masterfund market. The 2018/19 financial year saw platforms have a negative overall net fund flow of $12.4 billion - outflows of $57.8 billion, inflows of $45.4 billion.

Netwealth's retail managed funds offering is also leaving its competitors in the dust.

Plan For Life found retail managed funds grew by $30.3 billion last financial year to $973.1 billion in FUM.

Netwealth had the strongest growth in retail managed funds FUM, recording a 29.1% boost.

That was distantly followed by IOOF (5.1%), Commonwealth/Colonial First State (4.3%) and Mercer (3.9%).

BT might be at the top for total FUM in managed funds ($167.5 billion) but its annual growth of 2.5% is in stark contrast to Netwealth's.

Read more: NetwealthBTFUMLife ActuariesResearchersMacquarieMercerNational Australia Bank
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