Managed funds rebound

The managed funds business rebounded in the final quarter of last year, with investors entrusting a further $117 million to managers.

That was more than double the net $50 million invested in the September quarter, figures from researchers FundSource show.

The big winners were funds investing in mortgages, which attracted an extra $154 million in the last three months of the year.

But while many investors took the conservative option, others saw opportunity in the wake of September 11, with international sharemarket funds taking in $47 million.

Diversified funds, however, suffered a net outflow of $93 million, while investors also withdrew $18 million from New Zealand sharemarket funds.

The big winners in the latest quarter were the banks, with WestpacTrust, ASB and the National Bank attracting an extra $187 million among them, largely on the strength of their mortgage and cash funds.

However the good news was not evenly spread; of the 29 managers surveyed, 17 suffered a net outflow of funds. Among the losers were Sovereign, with an outflow of $18 million, Armstrong Jones ($21 million) and BT ($32 million).

FundSource says "retail" managed funds now look after investments worth almost $19 billion, up 5 per cent on a year ago.