The retail managed funds industry continued on its upward growth path
in the three months ending June 30, despite volatile international equity
markets.
Net funds under management expanded by 2.7 per cent in the quarter, according to research house IPAC Securities.
Modest fund returns meant the growth was primarily from net funds flow, IPAC general manager David van Schaardenburg says.
Net funds flows into unit trusts and super funds were positive at $355 million and $27 million respectively, contrasting with continuing outflows from insurance bonds (-$67 million) and group investment funds (-$18 million).
The decline in GIFs was mostly due to product rationalisation at AXA and investors moving out of Guardian Trust funds following Royal & SunAlliance taking over the business.
WestpacTrust moved into number one spot for inflows in the quarter attracting a total of $141 million. Most of this money has gone into its new mortgage fund, the WestpacTrust Home Loan Trust.
ASB Bank slipped from first to third, however still attracted $60.4 million compared to $69.1 million the previous quarter.
The big mover was BT Funds Management which jumped three spots from eight to fifth with flows of $37.9 million.
This move comes a year after the US-based Principal Group took over the business, and on the back of the launch of its technology TIME Fund.
Nearly half of the 34 managers in the survey lost money in the quarter.
Van Schaardenburg says the gross size of the total outflows increased by 50 per cent of the quarter.
"The outflows of the bottom five managers in the quarter ranged from between negative $10.5 million and $31.1 million."
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