KiwiSaver was the only managed fund sector to grow in the three months to September this year, according to new figures published by the Reserve Bank.The latest Reserve Bank managed funds survey put total KiwiSaver funds under management at almost $1.8 billion at the end of September compared to just over $1 billion at June 30, 2008.
Over the same three-month period superannuation funds under management, other than KiwiSaver, fell by almost $1.3 billion to $18.6 billion and had shrunk by close to $4 billion in the 12 months to the end of September 2008.
The Reserve Bank figures also showed over the September quarter: life insurance funds dropped from $8 billion to $7.9 billion; unit trusts and GIFs were down almost $800 million, and; other managed funds (including charities and private funds) holding steady at about $16 billion.
In total, New Zealand’s managed fund sector had declined by almost $1.5 billion in the three months since June this year and was off by approximately $8 billion from the high point of $66.4 billion under management as at September 2007.
The Reserve Bank figures show KiwiSaver funds have invested roughly 60% in New Zealand assets with the rest offshore. Almost half of the KiwiSaver funds were invested in New Zealand cash and fixed interest assets with only $142 million placed in local equities and unit trusts with a further $79 million put into property.
The $700 million invested globally by KiwiSaver funds was not broken down by asset class in the Reserve Bank figures.
The Reserve Bank included KiwiSaver funds for the first time in the September managed funds survey. The report excludes KiwiSaver schemes with less than $500 million under management, however, the Bank said its statistics cover 95% of the market.
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