Managed fund boom good for advisers
The latest data from the Reserve Bank shows that New Zealand’s total managed fund assets increased by nearly $10 billion in the year to December 2012 to reach a record high of $81.6 billion.
This is more than $10 billion above the previous peak of $71.3 billion in September 2007 before the global financial crisis, which saw New Zealand’s managed funds industry shrink to just $59 billion in March 2009.
All categories increased in funds under management in 2012 during a strong year for investment markets but the biggest gainer was KiwiSaver, which rose by nearly $4 billion to $15.4 billion.
Morningstar head of research Chris Douglas said New Zealand’s managed funds industry had benefitted from strong returns in the past year but its underlying trends were positive, particularly since the “game changing” introduction of the PIE regime in 2007 as well as KiwiSaver.
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