by Susan Edmunds
The asset manager announced yesterday that it had $675 million in retail investor assets under management (AUM) in June this year.
Nikko’s net inflows increased more than $100 million in the second quarter due to the firm’s focus on the intermediated retail market and commitment to engaging with retail investors.
The company’s total AUM has reached $4.5 billion, up $300 million on December 2014.
It is now the largest New Zealand asset manager that is not a default KiwiSaver provider.
All of the funds provided by Nikko Asset Management NZ to retail investors through authorised financial advisers (AFAs) or RaboDirect grew their assets over the past year.
While initial interest was primarily in domestic fixed income and global equity funds, investor interest in funds focussed on domestic equities is also growing.
Managing director Peter Lynn said Nikko had been engaging with AFAs through seminars that offered CPD credits. "We’re pleased to see our efforts to grow our share of the intermediated retail market deliver in such a short period of time.”
He said the firm had adopted an active strategy to get out and talk to advisers and that was starting to pay off. “It’s something we didn’t focus on before but we made the decision to reorient the business.”
The response from advisers had been positive, he said. “It’s easy and hard when you’re meeting advisers for the first time. They don’t know who you are and you want to invest with people you know but we’re not coming from a position where we are a new start-up. We have been around a long time and have good institutional pedigree.”
His goal had been to get AUM to $4.5 billion by the end of the financial year in March 2016, but that milestone was reached by June. Lynn wants to double AUM in five years and build retail AUM to half of that amount.
The market was also providing a boost, he said, because many investors were looking for alternatives in the current market. “New Zealanders still have so much money in term deposits and as interest rates track down there are people looking around because they are not providing much income and they need some alternatives.”
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