New Zealand’s retail funds management industry suffered a slowdown in growth during the December 1999 quarter according to the latest IPAC market share report.
New Zealand’s retail funds management industry suffered a slowdown in growth during the December 1999 quarter according to the latest IPAC market share report.
Net funds inflow during the final quarter of 1999 was $182 million down more than $100 million dollars on the previous quarter.
However, despite the decline in funds inflow, net funds under management grew sub-stantially over the period.
“Net funds under management (NFUM) expanded by 7.4 per cent in the December quar-ter and grew 17 per cent over the last year, this quarter’s rise mostly due to strong under-lying markets,” IPAC says.
“Weak fund flows over the quarter meant that the NFUM growth in the industry was well above that of the net funds flow.”
Net fund flows by sector type continued previous trends with unit trusts ($191 million) and super funds ($104 million) experiencing positive inflows for the December quarter contrasting with an outflow of $74 million from insurance bonds.
“Surprisingly, group investment funds also had a net funds outflow of $40 (compared to last year’s $82 million net inflow) due mostly to product rationalisation at AXA (for-merly National Mutual), and investors moving out of what were Guardian Trust’s (GT) funds post GT’s acquisition by Royal and SunAlliance,” IPAC says.
ASB Bank topped the funds inflow list for the quarter at $69 million with almost all of this directed to a single mortgage fund.
IPAC also noted a return by Colonial to a solid net fund inflow ($19 million this quarter versus $40 million outflow last quarter) following a fund rationalisation process while Royal and SunAlliance continued to lose ground with net fund outflows of $41 million, compared to $6 in the previous quarter.
Top five managers by net funds flow –
December quarter September quarter
$M $M
ASB Bank 68.7 50.70
NZ Funds 51.5 71.4
AMP 38.5 43.8
WestpacTrust 32.9 45.4
Armstrong Jones 28.6 37.8
Top five managers by net funds under management
$M % market share
Tower Group 2026.0 11.8
AMP 1722.5 10
Royal SunAlliance 1710.6 9.9
Armstrong Jones 1634.0 9.5
BNZ 1262.4 7.3
ends
