AUC slightly down at 2018’s end
Assets under custody (AUC) for Australian investors fell slightly in the last six months of 2018, dropping 1.2 per cent from the 30 June, 2018 total to hit $3.58 trillion.
Domestic assets in particular shrunk, down 3.4 per cent over those same time frames to finish the year at $2.33 trillion. The Australian Custodial Services Association (ACSA), who produced these figures), put this flattening of growth down to valuation effects as most asset classes fell over the six months to 2018’s end.
Unsurprisingly, there was a correlation between the fall in domestic AUC and an increase in those invested offshore, with global AUC growing 3.1 per cent from July – December last year to hit $1.25 trillion. The amount of inbound overseas client investment into Australia, meaning assets held in sub-custody, finished 2018 at $1.5 trillion. This was fractionally down on the six months prior.
For the 25 years to June’s end, which marked the first full quarter century for which ACSA had collected the data, assets had grown significantly. At the end of December, 1994, AUC in domestic assets was reported as $635 billion, with just $211 billion offshore.
Recommended for you
Dan Farmer, chief investment officer of MLC Asset Management, has detailed how its super fund allocations have evolved and whether the fund will consider investing in bitcoin.
Australia’s superannuation capital has been positioned to play a larger role in south-east Asia’s economic development under a new government-backed deal.
Superannuation funds have become the dominant force behind Australia’s private markets boom, fuelling unprecedented growth and reshaping manager operations.
Reserve Bank governor Michele Bullock has said the central bank sees private demand picking up over the next year, taking over from public demand.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
