Generate lifts profits as other managers report falling profits

The year ended March 31 has been a lean year for most fund managers, with the noteable exception of Generate Investment Management.

While most fund managers are reporting falling profits, Generate lifted its annual net profit 4.4% to $3.4 million with management fees jumping 20.8% and overall fee revenue up 6.6% to $44.4 million.

According to Morningstar, Generate, which cut its fees slightly in May last year and which doesn't charge performance fees, was the ninth largest KiwiSaver manager at March 31 with funds under management of $3.75 billion, up by $463.7 million from a year earlier.

Much if not all of that growth came from increasing contributions by its KiwiSaver members since most of its funds delivered negative returns in the year.