Aside from KiwiSaver managed funds, a greater recognition of the advantages of investing through tax efficient portfolio investment entities (PIEs) by retail investors was seen.
PIE products (including KiwiSaver) experienced positive net flows of $1.1 billion in the quarter. An influx of funds in the cash sector was a major contributor to the inflows.
Overall net fund flows into funds were positive at $664.66 million, compared to negative $400.9 million in the previous quarter.
“This is the first positive quarterly net flow since March 2007,” Head of FundSource Yvonne Davie says.
“The September quarter is also the largest net inflow for a quarter the industry has seen in the 18-year history of this report.”
She says the positive effect of KiwiSaver is evident, with growing fund inflows and funds under management.
“Other than inflows in KiwiSaver and Cash PIE products, net funds under management figures appear in line with expectations given current market conditions. Funds continued to flow out of Australasian Equity, NZ Property, NZ Mortgage, International Regional Equity, International Global Equity and International Fixed Interest.
“In the September quarter, NZ Mortgages experienced the largest outflow of $290.9 million.”
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