The funds flow figures for the December quarter show some encouraging results for a number of managers, but also reveal some unusual investor behaviour.
One of the main beneficiaries of good news is AXA which has finally moved off the bottom of the funds flow table up into fourth position in terms of net funds flow.
AXA has for some time had a strategic target of improving its position in the 'wealth management' industry and has been pouring significant resources into this sector.
Research house FundSource describes AXA's fourth placing as "a huge comeback from the $60.6 million outflow seen in the prior quarter."
It says the inflows have been into cash, Australasian and international equity funds.
The banks again dominate funds flow with WestpacTrust and ASB each getting more than $70 million of new money - the bulk of this headed for their mortgage funds.
Of the other banks, there are signs that the National Bank is starting to get its distribution together, bringing in $42 million in the December quarter. The majority of this, $37.6 million, went into its relatively new cash fund.
Bank of New Zealand reduced its outflow to $600,000 in the quarter - an improvement from the $13.5 million recorded in the previous quarter.
Investors did some strange things in the December quarter according to FundSource.
It says the most volatile sector, international equities, was "booming" in terms of funds flow, yet the New Zealand equities sector has suffered outflows for more than a year.
This appears strange as the New Zealand market has been going gangbusters, while international markets have tanked.
So while investors appear to be taking on risk, they are also embracing conservative funds.
Cash and mortgage funds have both recorded strong inflows.
"This phenomenon is difficult to understand given the contradicting risks between a stable sector, such as cash funds, versus the volatility normally displayed by international equity funds," FundSource says.
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