Unit trusts the winner
Fund flow figures for the March quarter don't augur well for superannuation funds and insurance bonds a
Monday, April 27th 1998, 12:00AM
Strong market returns in the past quarter have helped put a healthy sheen on funds flow figures.According to FPG Research $789 million was added to the total retail managed funds business in the three months to March 31, however just $4.8 million of that was new investment.
The balance was provided by capital growth provided by buoyant global markets.
Overall unit trusts were the only class of managed funds to be experiencing growth, adding to $86.7 million to their total assets under management.
Superannuation funds joined insurance bonds in the outflow stakes shrinking by $100 million in the quarter.
The news has been bad for insurance bonds for sometime now, and this is the first quarter since March 1995 that superannuation funds have recorded a net outflow of funds.
Insurance bonds have fallen out of favour with investors on a number of counts, the most recent being the removal of the superannuation surcharge.
FPG managing director Graham Rich says banks are capturing a greater proportion of the inflows into managed funds and their product ranges tend to be geared towards unit trusts rather than super funds or insurance bonds.
Banks have been the big winners in attracting investors' money in the year to March 31, with ANZ, BNZ and Westpac each experiencing inflows of more than $130 million.
ANZ was the big winner in past quarter attracting $36.4 million.
Overall AMP remains the biggest manager with net assets under management of $1.6 billion (excluding those which were previously managed by Southpac), $100 million ahead of Tower Corporation.
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