POWERED BY MOMENTUM MEDIA
Low returns dampens sector FUM/A
Funds under management and advice (FUM/A) has stagnated across all sectors on the back of low investment returns in the major asset classes and negative returns in other asset classes, DEXX&R research found.
The research house's Analysis Market Share Report showed the employer superannuation segment recorded the largest percentage decrease in FUM/A of 1.7 per cent, down $2.5 billion to $140 billion at June 2016, compared to $142.5 billion at June 2015.
Of the top five employer super managers, National Australia Bank (NAB) Employer Super FUM/A was down 2.3 per cent over the 12 month period to $36.3 billion at June 2016. AMP was up 0.9 per cent to $28.4 billion, ANZ was down 3.8 per cent to $14.3 billion, while Westpac was down 3.9 per cent to $17.5 billion.
Meanwhile, 30 per cent of total FUM/A in the employer super segment was now held in the MySuper option, up from 27 per cent at March 2016, while 15 per cent was total FUM was now held in default options, down from 16 per cent at March 2016.
Other investment options such as multi-sector, Australian shares, and overseas investments accounted for 57 per cent of total FUM/A, down from 58 per cent at December 2015.
Personal super FUM/A was down 1.5 per cent, down $3 billion to $196.7 billion at June 2016.
Westpac increased by 0.9 per cent to $32.4 billion, AMP decreased by 0.7 per cent to $47.7 billion, the Commonwealth Bank was down 1.7 per cent to $38.5 billion, IOOF was down 1.5 per cent to $11.9 billion, while National Australia Bank (NAB) was down 2.4 per cent to $29.3 billion.
The retirement income segment, however, showed growth, with an average return of 4.7 per cent over the same period due to the higher proportion of total assets held in fixed interest.
Recommended for you
A major super fund has defended its use of private markets in a submission to ASIC, asserting that appropriate governance and information-sharing practices are present in both public and private markets.
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
3
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
VanEck Video Gaming and eSports ETF (AU)
28.89 3 y p.a(%)
