Fund flow weak
The retail managed fund industry faces a very challenging environment, as investors continue to take out their money and values fall.
Friday, August 1st 2008, 6:14AM
KiwiSaver funds continue to be the only area to buck this trend, with an overall positive fund flow of $311.2 million.
Overall net funds under management has seen a significant decline in the June quarter, dropping from $18,850.7 million at March 31 to $16,917.4 million.
However, these figures have been impacted by both NZ Funds and First Mortgage Managers requesting that FundSource cease coverage of their funds flow in the survey. This quarter's funds flow includes an adjustment for the removal of these two funds, which together comprised $1,431.6 million.
"Net funds under management figures appear in line with expectations given current market conditions," FundSource spokesman Leonie Gordon says. "However, fund outflows remain fairly high, especially in the property and mortgage sectors, where there have been combined outflows of almost $300 million over the quarter."
She says investors have pulled money from these sector after recent poor performances associated with the declining property market.
"The positive effect of KiwiSaver is evident, with ever-growing fund inflows and funds under management. With KiwiSaver members now numbering over 700,000, this inflow is likely to continue its current upward trajectory."
| « Do not over-regulate advisers: Power | Sovereign takes regulation bull by the horns » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
