BNZ has supplanted Booster as NZ’s ninth-largest retail fund manager in a quarter where BT/Westpac drew on almost level pegging with AMP, new figures from Australian research house Strategic Insight (SI) show.
According to the SI data, BNZ demoted Booster to 10th on the retail manager list after clocking in the highest growth over the June quarter of 8.7 per cent to finish with almost $1.3 billion under management. BNZ, buoyed mainly by its rampant KiwiSaver scheme, also topped the 12-month growth-rate statistics after increasing retail funds under management (FUM) by more than 45 per cent – almost double the next fastest-growing managers, Kiwi Wealth and Milford, which added 24.5 and 24.8 per cent respectively over the annual period.
Meanwhile, during the three months to June 30 BT/Westpac hauled itself within $14 million of third-placed AMP, which again was the slowest-growing of the top 10 managers over the quarter, turning in a 0.5 per cent result. AMP also reported the lowest annual growth figure among its retail peers of 9.6 per cent to finish with just over $10.4 billion as at June 30, the SI figures reveal.
During the 12-month period AMP saw its retail fund market share slide 0.4 per cent to measure 12.5 per cent at the end of the June quarter. However, top-ranked manager, ANZ, gave up the largest chunk of market share over the year dropping from 29.6 per cent in June 2016 to 28.9 per cent at the latest reading.
Regardless, with $24.1 billion under management ANZ retains more than double the FUM of second-largest manager, ASB. The Commonwealth Bank of Australia-owned ASB, however, clawed back market share over the year, rising from 13.7 per cent as at June 2016 to 14.1 per cent 12 months later.
Managers outside the top 10, though, suffered a torrid 12-month period with their collective market share shrinking to 7.7 per cent compared to 8.6 per cent in the previous June. Total FUM for ‘others’ fell by 1.5 per cent (or about $90 million) during the June quarter to about $6.4 billion – equating to an annual increase of just under $100 million.
“Gross inflows for the year to June were NZ$22.0bn, up 5.8%, on the previous twelve months total; during the June quarter reported inflows increased 16.6%,” the SI release says. “Generate, Milford, BNZ, ASB, Fisher, and BT/Westpac all reported significant double digit percentage increases in their annual inflows.”
Overall, the SI data shows the NZ retail managed funds sector grew by 2.4 per cent in the June quarter and 13.1 per cent over the 12 months to reach more than $83.5 billion.
“Around half of this growth was due to further significant positive net fund flows experienced during the past year with good positive performances on underlying investment markets accounting for the other half,” the SI report says.
As expected, the government-mandated KiwiSaver regime fueled the majority of the retail FUM growth, representing $7.2 billion (or 75 per cent) of the net $9.7 billion net gain in the sector during the 12-month stretch.
The KiwiSaver market was up 20.5 per cent over the annual period compared to 7.1 per cent for non-super retail funds, the SI report says. Over the June quarter, KiwiSaver also hit another milestone, growing to represent more than 50 per cent of the total retail market for the first time.
As at June 30, KiwiSaver FUM was about $42.3 billion compared to $34.3 billion for non-super unit trusts and managed funds, according to the SI data.