Master trusts continue to fall

Master trusts fell 8.1 per cent over the year to 30 June despite an uptick in the overall masterfunds market.

According to a report from Plan for Life, inflows into the master trusts market – worth more than $124.9 billion – fell more than 4 per cent in the last financial year, following on from a 20 per cent drop the previous financial year.

Annual net flows were negative $2.8 billion.

However, both wraps and platforms performed well following a market correction in the final quarter of 2018, with the overall masterfund market rising 4.4 per cent over the 2018-19 financial year to a total of $885.9 billion.

Over June the masterfund market rose 3.3 per cent.

The $339.3 billion under management in wraps (45.1 per cent of the total masterfunds market) rose 7.3 per cent, with net fund flows of $8.4 billion.

Advertisement
Advertisement

The top three players in the wrap market were AMP, BT and Macquarie, accounting for $78.8 billion, $67.4 billion and $42.6 billion, respectively, while ownership became even more concentrated – BT’s share of the wraps market jumped to 31.4 per cent.

The $361.8 billion under management in platforms increased 6.3 per cent despite a negative overall net fund flow of $12.4 billion.

Commonwealth/Colonial accounted for $94.3 billion of the market (26.1 per cent), National Australia Bank/MLC accounted for $85.5 billion (23.6 per cent), and AMP accounted for $50.2 billion (13.9 per cent).

Master trusts continue to fall
default
ifa logo

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

from the web

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.