KiwiSaver boost to retail funds

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Confidence appears to be returning to retail managed funds, according to figures from Fundsource.

A net $253 million flowed into the sector over the December quarter, the second consecutive quarter of positive growth. Managed funds gained a net $698m in the September quarter, although that was affected by tax credits. Over the year, funds inflows totalled a net $1.19 billion.

Fundsource's business manager, TJ Singh, said KiwiSaver funds contributed a net $424m during the quarter.

Diversified funds were the major beneficiary from Kiwisaver, taking in a net $375m.

Unit trusts gained net positive funds flow of $104m, up from a net $7m in September.

Total net funds under management, including returns, grew 6.3 per cent over the December quarter, reaching $19.5 billion. The previous quarter was even more robust, up 10.6 per cent.

Mr Singh said investors were favouring New Zealand diversified, cash, fixed interest, Australian and global international equities.

- © Fairfax NZ News