New Zealand's managed funds industry reported a negative funds flow in the three months ended June following three consecutive quarters of positive results, FundSource figures showed yesterday.
Net funds flow in the quarter were -$70 million but for the year, the funds flow was still positive at $1.4 billion.
Inflows into KiwiSaver products continued to be the key driver of funds flow into the industry in the past year.
KiwiSaver funds experienced positive net flows of $384 million in the June quarter, bringing the total net flow for the year ending June to $1.85 billionFundSource head of business Yvonne Davie said the positive effect of KiwiSaver on retail managed funds flow was still evident.
However, the June quarter flows were about $50 million less than the March quarter, suggesting that the initial growth phase had reached a plateau.
Other than inflows to KiwiSaver, net funds under management appeared in line with expectations given current market conditions, she said.
Funds flowed out of New Zealand property, New Zealand mortgage, international global equity and New Zealand cash sectors.
Funds flowed into Australasian equity, New Zealand diversified and international regional equity sectors.
An interesting feature of the quarter was the number of funds that had been wound up, Ms Davie said.
ASB had been working with some workplace and retail superannuation clients to migrate funds out of less efficient legacy products into KiwiSaver or its superannuation master trust.
"I would expect this rationalisation to continue as managers look to consolidate their product range and investors look for more tax-efficient investment vehicles," she said.
