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Better Business Value

Masterfund market plummets

Drops 15 per cent

By Alice Uribe
Wed 04 Mar 2009

All three Masterfund sub-markets report falls in FUM.

The total Masterfund market, comprising platforms, wraps and master trusts, dropped nearly 15 per cent for the year to 30 September 2008, according to the latest statistics from Plan for Life Actuaries and Researchers.

The research firm reported that wraps, which make up 29.7 per cent of the market, fell by 15.8 per cent. Platforms, which make up 53.4 per cent of the market, fell by 15.2 per cent.

Master trusts, which comprise 16.9 per cent of the market, dropped 11.7 per cent.

The total Masterfund market is now worth $386.8 billion, a fall of $67.4 billion from 30 September 2007.

The biggest loser was Macquarie Investment Management, which saw its funds under management (FUM) fall by a whopping 23 per cent from the previous year.

Large falls were also felt by Asgard, whose FUM fell 16.6 per cent. MLC Ltd saw its FUM fall by 18.4 per cent.

Even AMP Financial Services, which took pole position for the total Masterfund market, reported a drop in FUM of 11.9 per cent to $41.1 billion.

Inflows for the market were also down to $110.9 billion from a record $145.7 billion in the previous year.

The research firm said all major companies reported small to medium negative growth over the year.

Stuart Holdsworth

Author Stuart Holdsworth

Stuart has over 30 years of experience in the use of technology for the strategic competitive advantage of businesses in the financial markets and investment industry.

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