Funds under management fall 14.7pc

KiwiSaver funds have grown to $2.1 billion after quarterly growth of 19.2pc.

The amount of funds under management has fallen 14.7 per cent in the last year and the fall would have been worse if it wasn't for KiwiSaver.

New Zealand had $20.6 billion of funds under management in the December quarter, down 7.6 per cent on the previous quarter and 14.7 per cent on a year ago, according to an analysis by actuaries Eriksen & Associates and Plan for Life.

Most of the fall was due to a decline in the market values of the funds' underlying investments in the global economic downturn.

KiwiSaver funds recorded quarterly growth of 19.2 per cent to have $2.1 billion under management. This was down from the 50 per cent plus growth rates in previous quarters.

Unit trusts and managed funds recorded a 10.5 per cent quarterly and 21 per cent annual decline in funds, and insurance and investments bonds recorded a 11 per cent quarterly and 28.8 per cent annual decline.

The other superannuation category recorded an 8.4 per cent quarterly decline and 26.1 per cent annual decline.

A breakdown of all funds under management showed double digit annual declines for ING NZ, AXA NZ, AMP Financial Services NZ, Tower, Asteron NZ, Russell Investment NZ and Guardian Trust.

- NZPA