Funds flow down to a trickle

During the three months to March 31 funds flow fell from $116.9 million to $59.4million, FundSource says. However during that same period more than $70 million was invested in Macquarie's Australian domiciled hedge fund the Titan Trust.

Funds flow into the tax-effective offshore funds also slowed during the quarter, but not to the same extent as retail managed funds.

The Good Returns quarterly survey of UK-based Open-Ended Investment Companies (OEICs) and Australian unit trusts shows that in the March quarter net funds flow into OEICs totalled $15 million, well down on the peak of $26 million recorded in the September quarter last year.

Likewise funds flow into Australian based funds (AUTs) covered by the Good Returns survey have also slowed. During the March quarter net funds flow into AUTs was $44 million, compared to $54 million three months earlier.

(More details of flows into tax-effective funds are in the May issue of Asset magazine which is due out next week).

FundSource says the lion's share of retail money again went into two mortgage funds run by WestpacTrust and ASB Bank.

Overall $82.3 million was invested in mortgage funds during the quarter and international equities fared well collecting $46.5 million.

The big losers were cash and diversified sectors, recording outflows of $48.8 million and $46.9 million respectively.

The top five firms in terms of funds flow were ASB Bank, WestpacTrust, Macquarie, AMP and National Bank. Of these five firms Macquarie was the standout jumping from 26th place last quarter to third this time around.

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