Revisit the trends that have evolved this year and how they are likely to impact AFSLs, super funds, investment managers, insurers and platform providers in 2025 and beyond. You can also re-visit Rainmaker Information's webinar wrapping up the wealth management landscape in 2024.
Institutional funds under management grew 12% while wholesale FUM went down 2.3% during the 12 month period to 30 June 2024.
Indexed FUM grew 24.2% in 12 months to June 2024 and now represents a quarter of overall funds under management.
For the 23-24 financial year, 66% of active Australian equities managed funds and 78% of active international equities managed funds underperformed the capital markets indexes.
Dual access Exchange Traded Products (ETPs), which are transacted both on stock exchanges and off-market through funds managers, can cost four times as much as the rest of the Australian ETP market.
The fastest growing sector is international equities small caps, which grew 29% over 12 months from funds flow alone. Four of the top 10 were ETPs with one of those being a smart beta product (VanEck MSCI International Small Companies Quality ETF).
The number of ASIC-registered financial advisers decreased 0.9% through the 12 months to end September 2024 to reach 15,861.
During June– September, total number of advisers went up by 36.
The total number of advice licensees rose 1.5% during the 12-month period and by 0.7% in the September quarter. This results in there now being 1,884 AFSLs operating in Australia.
The AFSLs with 51-100 advisers continue to be the fastest growing. Their adviser numbers increased in aggregate by 8% over the 12 months.
Count Financial, Alliance wealth and Picture Wealth were the AFSLs showing the most new advisers. But Millennium 3 Financial, Morgan Stanley and Consultum Financial were the AFSLs showing the biggest falls in adviser numbers.
Rate of change in financial adviser numbers in Australia
Superannuation FUM increased 8.9% through the year to 30 June 2024 to reach $3.8 trillion, in line with the growth in overall funds under management.
The MySuper segment grew marginally faster, i.e., by 11.8% with total FUM of just over a trillion dollars.
More than one-third of superannuation products have exited the industry over the past five years.
More than two-thirds of products with FUM above $55b have below-average fees.
In real terms over 10 years, ie, after inflation as measured by the CPI, super fund default options on average achieved investment outcomes of 4.4% pa. This is still in excess of their expected target return range of 2-4 percentage points above inflation.
Insignia continues to be the platform marker leader with $233 billion FUA for a 21.3% market share, followed by Colonial First State with 12.9%, Macquarie and BT both with 12.4% and 12.3% respectively, and AMP with 11.1%.
Managed accounts had the highest growth in percentage terms of funds under advice among platforms, with a 21.% increase.
Funds under advice in retirement trusts grew by 18.9%, wraps grew 17.5%, while the total platforms market grew 14.1%.
The wholesale market comprises $1.1 trillion from platforms, $485 billion from retail unit trusts, an estimated $198 billion available in pooled vehicles used by SMSFs, $204 billion in ETFs, $52 billion in listed investment companies (LICs) and $1.3 billion in ASX mFunds.
Superhero Super, Vanguard Super, and Acclaim Pension were the fastest growing platform products in the year to 30 June 2024.
Platform funds under advice growth, year to 30 June 2024
