The NZ funds management sector topped up by more than $17 billion last year as solid markets and strong flows grew the sector by close to 16 per cent to reach a new record high of $324.5 billion.
Since the end of 2018, the managed funds market tracked by Reserve Bank of NZ has grown roughly 80 per cent from $180 billion.
KiwiSaver now represents about 40 per cent of the country’s total funds under management (excluding government-owned investment vehicles) after hitting a peak of almost $128 billion by year-end, according to just-released Reserve Bank of NZ (RBNZ) figures.
Over the 12 months to December 31, 2024, the KiwiSaver universe expanded by 18.7 per cent and 4.1 per cent during the final three months of the year.
But the RBNZ data also plots an even higher growth-rate for the non-superannuation retail funds market, which was up almost 21 per cent for the annual period and 11 per cent in the December quarter.
In absolute terms the almost $77.5 billion retail fund sector still lags the quasi-compulsory KiwiSaver but it has eked out relative gains over the last couple of years: at the end of 2022 the retail fund world equalled about 58 per cent the size of KiwiSaver versus 60 per cent in the latest RBNZ report.
Meanwhile, the traditional superannuation fund market barely budged over the two years to the end of 2024, reporting about $32.4 billion under management compared to just over $32 billion as at December 31, 2022.
The central bank-produced data also shows private wealth funds increased to $45.6 billion by year-end, equating to a quarterly gain of 5.7 per cent and a 13.3 per cent annual growth-rate.
Funds in individually managed accounts rose $6.3 billion over the 12-month period to finish 2024 at almost $54 billion, the RBNZ figures show.
Shares finished the year with a splurge for NZ investors as listed equities holdings jumped more than 7 per cent in the final quarter (and almost 22 per cent for the 12-month period) to close at $157 billion.
Cash and long-term debt reported more muted annual gains of 12.5 per cent and 9.8 per cent, respectively, equating to $50.5 billion and $83.4 billion by December 31 last year.
By contrast, NZ investor exposure to short-term debt (12-month or less maturity) fell 5.1 per cent year-on-year to $14.3 billion despite an almost 11 per cent uptick in the asset class over the final quarter.
Following a bumper year for global equities, the KiwiSaver market tilted even further to overseas assets, the RBNZ statistics show. KiwiSaver funds held more than 60 per cent in offshore assets at the end of last year compared to about 58 per cent 12 months prior and 54 per cent in the December 2022 numbers.