THE growing popularity of master funds and wrap accounts has been one of the main themes of the managed funds industry over recent years.
Westpac CEO David Morgan acknowledged as much when he announced the purchase of BT Financial Group last month.
“With the inclusion of the BT Wrap platform, the transaction fills a key strategic objective in delivering a market leading client portfolio administration platform,” Dr Morgan said.
“The platform provides investors and financial advisers with consolidated reporting and administrative services and has been identified as the fastest growing area of wealth management.”
BT, along with Macquarie Financial Services, were the leaders in developing wrap accounts as an alternative to master trusts.
Dr Morgan claimed number two ranking in the master trust/wrap segment, with Westpac and BT having $11 billion of funds under administration.
AXA Asia Pacific CEO Les Owen made the same claim in July when he announced the purchase of ipac Securities.
“Together AXA (including Assure) and ipac will be in second place in the growing master trust segment with more than $11 billion in funds under administration,” Mr Owen said.
Both Westpac and AXA put themselves ahead of Asgard Capital Management, on the basis that Asgard has $10 billion in self-branded master trusts.
However Asgard’s total funds under management are $15 billion, after adding in the private label or re-badged master trusts run by group’s like Beacon Investment Management.
