Kiwisaver the darling of mum and dad investors

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Kiwisaver continues to dominate New Zealand's ``ma and pa'' investment scene, with the voluntary savings scheme the only investment category to score positive net fund flows for money managers in the September quarter.

Created in an attempt to reverse New Zealand's apathy towards saving for retirement the fledgling scheme has more than fulfilled its role; at the end of November more than $4.5 billion was spread across 1.25 million personal accounts.

During the September quarter alone KiwiSaver funds under management jumped nearly 40 per cent, according to figures compiled by retirement specialist Eriksen & Associates, with net inflows topping $945m.
Some of the gloss was taken off, however, by net losses across all other retail investment sectors.

The pot for alternative superannuation funds fell by $30m, insurance and investment bonds slipped $19m and unit trusts and managed funds haemorrhaged a whopping $215m.

Thanks to KiwiSaver's traction overall retail managed funds jumped 11 per cent during the three month period to total $23.6b.

Managing director Jonathan Eriksen said the result reflected the bounce back in investment markets from previously depressed levels.

``After two full strong quarters of growth since the depths of the global financial meltdown back in February and March, the overall retail funds market is actually 5.9 per cent higher than it was in September last year when the crisis first began in earnest with all of this overall market growth attributed to the popular and innovative KiwiSaver range of products,'' he said.

As at September end, ANZ National Bank owned ING was the country's largest retail investment player holding $4.2b of Kiwi's cash, followed by Axa  the subject of a A$13.2b proposed acquisition by National Australia Bank  with $3.7b and ASB with $3.4b.

- © Fairfax NZ News