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Masterfund FUM climbs $55bn in 2014

For the year ended December 2014, the overall masterfund business grew 9.8 per cent, up from $564.3 billion the previous year, according to research by Plan For Life.

The research house said masterfund business grew $55.2 billion to $620.2 billion in 2014, climbing $23.1 billion during the December quarter alone.

Plan For Life highlighted that the growth during the December quarter occurred “off the back of buoyant” and at times “nervous and wobbly” investment markets that were supported by “unprecedented stimulatory low interest rate policies”.

Plan For Life said all the major institutions reported growth in funds under management, with Commonwealth/Colonial growing by 12 per cent, AMP up 11.7 per cent and BT growing by 11.1 per cent.

The research house also found wraps experienced a growth of 13 per cent for the year.

“AMP ($48.1 billion), BT ($41.7 billion), Macquarie ($40.7 billion) and National Australia/MLC ($28 billion) dominate the Wrap market accounting for close to [two thirds] of the overall total,” a statement from Plan For Life said.

“From an administrator point of view, wraps are even more concentrated, with BT ($95.7bn) alone being responsible for almost 40 per cent of the wrap total.”


Platform funds also increased throughout the year although at a “more moderate rate” of 6.5 per cent, with the increase being “virtually” a result of investment earnings, Plan For Life said.

“Annual Inflows were $59.2 billion (39.5 per cent) but these were almost all offset by outflows of $58.9 billion (46.9 per cent), resulting in a net fund flow of only $0.3 billion (1.1 per cent),” the statement said.

“National Australia/MLC ($72.5 billion), Commonwealth/Colonial ($71 billion), AMP ($54.5 billion), IOOF ($29.2 billion), OnePath ($22 billion) and Mercer ($19 billion) [all led] the platform market,” it said.