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.

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
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