KiwiSaver keeps managed funds afloat

The September quarter was the largest positive net funds flow period for the retail managed funds industry for the calendar 2010 year.

Monday, November 1st 2010, 7:03AM

The net funds flow was positive at $486 million, compared with a positive $101 million in the previous quarter. Over the 12-month period to September, net fund flows totalled a $1.1 billion, a four percent lower than the same period last year.

KiwiSaver have continued to be the key driver of funds flow over the past year. KiwiSaver funds experienced positive net flows of $1.1 billion in the September 2010 quarter, which brought the total net flow into KiwiSaver for the year ending September 2010 to $2.5 billion, a 15% increase compared to the same period last year.

Apart from KiwiSaver, there is a bleak trend for other investment vehicles including group investment funds, superannuation funds, insurance bonds and Australian unit trusts. These categories have experienced ongoing fund outflows with superannuation funds and group investment funds topping at $302 million and $136 million respectively in the September quarter. The total net fund outflow for sectors other than KiwiSaver stood at $1.3 billion for the year ending September 2010.

The industry saw a 12.6% rise ($2.4 billion) in total funds under management to sit at $22 billion over the year to September.

However, this strong increase was boosted by the $1.3 billion inclusion of AXA's existing funds that have been added to the report statistics this quarter. As a consequent, AXA claims third spot with $3.2 billion funds under management in the September 2010 quarter, while ING and ASB maintain their first and second place with $4.1 billion and $3.3 billion respectively.

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