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Managed funds hit by market turmoil in June quarter

KiwiSaver growth slowed to 4.3% in the last quarter as world markets declined, although annual growth was nearly 80%, according to research released today.Fund inflows were less impressive with a decline of 4.9% for the three months ended June, although a

NZPA
Tue, 28 Sep 2010

KiwiSaver growth slowed to 4.3% in the last quarter as world markets declined, although annual growth was nearly 80%, according to research released today.

Fund inflows were less impressive with a decline of 4.9% for the three months ended June, although annual growth was 16.6%, actuaries Plan for Life and Eriksen Associates said.

ING NZ had the largest slice of the KiwiSaver market at 22.5%, or $1.29 billion. ING's quarterly growth rate was 6.5%, and its annual growth was 100%.

The 10 biggest funds had annual growth of over 77%.

The larger companies had been increasing their relative market shares as investors favoured default providers, and smaller fund managers bowed out, the researchers said.

Total KiwiSaver funds were $5.72b, with gross inflows of $2.9b for the year to June.

All retail managed funds, including KiwiSaver, fell by 3.5% during the quarter to $24.2b as markets reacted to potential sovereign debt defaults.

For the year, total funds rose by 13.7%, with growth rates topped by Mercer (31.5%), Fidelity Life (23.6%) and ING (17.7%).

ING had 18% of the managed fund market, followed by AXA NZ (15.2%) and ASB Group Investments (14.1%).

Non-KiwiSaver superannuation funds declined by 7.2% in the quarter to $5.2b, but were up 1.4% over the year.

Gross inflows were up 0.6% for the quarter, but fell 19.6% annually as investors redirected money into KiwiSaver funds.

NZPA
Tue, 28 Sep 2010
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Managed funds hit by market turmoil in June quarter
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