Funds flow slows

March was another shocker for the managed funds industry in New Zealand with nearly quarter of a billion dollars flowing out of funds.

Monday, April 28th 2003, 12:52AM

According to FundSource the industry recorded net funds flow of -$247.8m for the three months to March 31, four and a half times any outflow prior to the last quarter last year.

The story is similar to previous quarters in recent years with large flows coming into bank run mortgage funds and large outflows out of diversified funds.

The biggest net outflows in the diversified fund sector again came from AMP, BNZ, Tower and Westpac, who jointly manage 40% of the net funds under management in this sector.

Also this quarter money left the international (global) equity sector.

A surprising feature of the quarter was that Forsyth Barr topped the table with a $34.3 million inflow, which was largely attributable to $38.8 million flowing into its cash management fund. ASB followed with an inflow of $32.9 million, again due to inflow of $52.3 million into a single fund, the ASB Residential Mortgage trust.

Third was Macquarie, which experienced inflows of $10.9 million into its Gilt Edge Access Account. Out of the 27 fund managers surveyed by FundSource, 17 recorded net outflows. Excluding the top three managers, the remaining 5 of 8 that recorded net inflows had a combined inflow of $31.3 million.

Other points

ING is now the largest fund manager (it’s combined with ANZ)
Mortgage sector pulled in $130.7 million
Australian unit trusts recorded their largest outflow to date of $17.3 million
Insurance bonds recorded their first net inflow, $21.4 million, in more than five years
Net funds under management fell 3.13% to $17.3 billion
This decline was split broadly between net funds outflow and negative fund returns
ASB was the only top 10 manager to increase market share in the past 12 months.

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