MySuper growth continues: DEXX&R

Default superannuation options still hold a greater share of the employer super market than the MySuper option, despite a fall in their share of funds under management and advice (FUM/A) in Q1 2015, a report reveals.

Data from the DEXX&R Analysis Market Share Report found the MySuper option increased its share of the employer super segment by two per cent (to 13 per cent) in the March 2015 quarter, while the proportion of FUM in default options fell by one per cent to 26 per cent.

The report found that FUM in other options including multi-sector, Australian shares and overseas investments also declined in the three months to the end of March.

Over the year to 31 March 2015, employer super FUM/A increased by 12.1 per cent to $136.1 billion.

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Of the leading employer super managers, Westpac Employer Super FUM/A increased by 13.9 per cent to $18.7 billion over the year, with NAB, Mercer, and AMP all recording growth in excess of 11 per cent.

The report also noted growth in the FUM/A of nine per cent in the personal super segment, over the year to 31 March.

Again Westpac recorded the highest rate of growth in FUM/A, up 11.2 per cent to $32 billion, while AMP saw an increase of 10.4 per cent to $49 billion and the Commonwealth Bank of Australia recording growth of 7.5 per cent to $41 billion.

The report found FUM/A held in retail and wholesale managed funds grew by 15.4 per to $1.14 billion in the 12-month period, with the strongest growth in FUM in the retail market was recorded in the retirement incomes sector with a 19.6 per cent increase up $27.8 billion to $170 billion from March 2014, while the retail investment segment grew by 15.8 per cent.

Of the top leading managers, AMP recorded FUM/A growth of 23.4 per cent to $32.1 billion, with IOOF's retirement income FUM/A increased by 21.7 per cent to $11.9 billion, while the Commonwealth Bank of Australia saw growth of 19.1 per cent to $41.9 billion.