The NZ retail funds sector nudged $200 billion in the March quarter amid strong investment performance and solid flows, according to the latest Plan for Life (PFL) market data.
Overall, retail funds under management (FUM) surged 5.4 per cent during the three months to March 31, equating to about $10.9 billion, and 14.6 per cent – or almost $25 billion – year-on-year.
As at the end of March this year total retail FUM breached $195 billion, comprising close to $112 billion of KiwiSaver money and more than $74 billion of other managed funds: legacy superannuation products ($9.5 billion) and insurance/investment bonds ($195 million) made up the remainder.
The PFL figures also show KiwiSaver continues its exorable rise in market share, increasing from just under 55 per cent of total retail FUM on March 31, 2023, to over 57 per cent 12 months later.
KiwiSaver assets grew 19.1 per cent over the 12-month period compared to a still-healthy 10 per cent for non-super retail funds.
During the quarter Mercer joined the now seven-strong $10 billion club despite recording the lowest three-monthly growth-rate of 0.9 per cent. However, the PFL report shows Mercer booked the highest annual growth of 34.2 per cent – likely after onboarding the rump of former AMP Capital NZ retail funds.
Aside from Mercer, three managers saw annual FUM-growth of 20 per cent or more, led by Simplicity (23.7 per cent), Milford (22.8 per cent) and Booster (20 per cent).
The still-largest retail fund manager, ANZ, reported the lowest annual growth-rate (8.2 per cent) among the top 10 named firms in the PFL table, putting it with AMP (8.3 per cent) and ASB (9.7 per cent) as the only players not to crack double-digit percentage increases for the 12-month period.
ANZ lost 1.1 per cent market share year-on-year to finish on 17.4 per cent, or $34 billion, as at March 31 while ASB (-0.5 per cent) and AMP (-0.3 per cent) also slid backwards: Milford soaked up most of the market share gains, rising from 9.4 per cent at the end of last March to 10.1 per cent, or $19.7 billion, 12 months later.
The most recent NZ retail sector report also marks the debut of wealth management roll-up, FirstCape, in the tables, earning a number eight spot with almost $9.2 billion. FirstCape includes the retail funds offered by BNZ and Harbour Asset Management.
BNZ was the 10th largest manager in the previous PFL survey, reporting FUM of almost $6 billion.
The top 10 managers represent 80 per cent of the total NZ retail FUM, the data from the Australian research house shows.
March quarter gross retail fund flows fell 19.2 per cent year-on-year, the PFL report says, but annual inflows “still finished up 2.7% to total NZ$35.4bn”.
“While Milford (35.8%), AMP (26.5%), FirstCape (19.3%) and Booster (12.2%) all reported substantial Inflow increases those of market leader ANZ (-12.7%) and BT / Westpac (-23.1%) both fell,” the PFL survey says.
Nonetheless, gross retail flows for the 12-month period remain well off the peak of about $50 billion recorded in 2022.