Managed funds annual net flows amount to $16b

Oksana Patron

28 September 2022

The managed funds industry had estimated net flows of $16 billion in the 12 months to 30 June 2022, with funds under management (FUM) having increased 2.3% through net flows at a time when the total market decreased by $29 billion to $652 billion, according to Rainmaker Information’s Managed Funds Flow report.

As far as the asset classes were concerned, Aussie equities large cap had the highest 12-month net flows with $6 billion on final FUM of $102 billion, representing a 6% increase through flows.

Bonds with credit and high yield characteristics had the second highest net inflows with $5.7 billion to $48 billion, an increase of 13% through flows.

The third highest net inflows were posted in the diversified products category (growth, balanced and capital stable) with $4 billion to FUM of $62 billion.

At the same time, alternatives saw the largest decrease in percentage terms with a reduction of 7% or $922 million.

The largest outflows were recorded across international equities large cap, which suffered $3.2 billion in net outflows, an equivalent to 2% of FUM.

Of the 154 managers in the Rainmaker database, 92 had net inflows and 62 had net outflows over 12 months which meant 60% had positive net flows and 40% had negative net flows.

“Measuring net flows allows us to see how the market is reacting across asset classes, products or even across investment managers, without having investment performance skew how we are perceiving demand,” John Dyall, head of investment research at Rainmaker Information, said.

“We have found that net flows trail performance by 12 months, so leading performance will experience inflows from investors 12 months later and the same goes for poor performers experiencing outflows.”

Dyall also said that of the credit products, the top five by inflows all had a lot of direct loans/mortgages in them and accounted for around 85% of inflows into this sector.