Net inflows into the New Zealand retail funds industry during the March quarter were up almost $NZ60 million on the last quarter, according to the latest IPAC market share survey.
Net inflows into the New Zealand retail funds industry during the March quarter were up almost $NZ60 million on the last quarter, according to the latest IPAC market share survey.
The March quarter IPAC report measured an overall net inflow of $257 million in contrast to the $NZ199 million net inflow in the December 1999 quarter.
“Post Y2K relief and buoyant equity markets have been the main features of the March 2000 quarter, with the retail fund management industry growth picking up from the December 1999 quarter,” IPAC says.
However, despite the strong inflows net funds under management grew by only 1.7 per cent this quarter compared to a growth of 7.4 per cent in the December period.
“Modest fund returns over the quarter meant that the net funds under management growth in the industry was primarily driven from net funds flow,” IPAC says.
The survey also confirmed the trend towards diversified and international equity funds. Diversified super funds captured the highest inflow during the quarter of $NZ123 million followed by global equity unit trusts ($NZ92 million) and diversified unit trusts ($NZ77 million).
“Of the top 10 fund managers by net funds under management, most have a large per-centage of their assets under management invested in New Zealand diversified funds,” IPAC says.
“The most glaring exception to this is Armstrong Jones, who through the management of SIL and MFL [major superannuation funds] hold 38 per cent of its assets in New Zealand property.”
While unit trusts and super funds continue to benefit from positive flows, both insur-ance bonds and group investment funds suffered further outflows this quarter.
“Once again group investment funds also had a net funds outflow of $NZ12 million (last 12 months $NZ45 million outflow) due mostly to product rationalisation at AXA and investors moving out of what were Guardian Trust’s funds after its acquisition by Royal and SunAlliance,” IPAC says.
The top 5 placings both in terms of net funds flows and net funds under management remain unchanged since the last quarter. ASB Banks tops the list ($NZ69.1 million) and Tower still holds the most funds under management ($NZ2067 million).
“At the other end of the spectrum Royal and SunAlliance (including Guardian Trust) again experienced net fund outflows, its outflows totalling $10.6 million,” IPAC says.
“Both ANZ and BNZ again registered negative total net funds flow. This is mostly due to negative flows out of BNZ’s unit trust products and ANZ’s superannuation and insurance bond products.”
Top Five Managers – Net fund flows during March quarter
ASB Bank $69.1m
NZ Funds $61.7m
AMP $37.3m
WestpacTrust $34.4m
Tower $28.9m
Top Five Managers – Net funds under management
Tower $2067.3m
AMP $1761.6m
Royal and SunAlliance $1672.1m
Armstrong Jones $1634.3m
BNZ $1268.0m
March quarter fund flows by product type
Unit trusts $221.3m
Group investment trusts $-12.2m
Insurance bonds $-53.3m
Superannuation funds $101.3m
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