New Zealand Retail Managed Funds drop $9.1bn during March Quarter 2020

Overall Retail Managed Funds at the end of March totalled NZ$105.9bn, which was up 3.7% over the past year, despite dropping 7.9% during the March quarter, due to global investment markets dropping sharply with the fall initiated by the extraordinary quarantine measures enforced to slow the spread of the COVID-19 pandemic. They have since partially bounced back (US markets almost fully) but remain volatile and uncertain as economies worldwide continue to be in trouble with the spread of the virus out of control in many countries and the spectre of a 2nd wave of infections rapidly growing.

The performances of the four leading companies was subdued and mixed with both ANZ (1.4%) and ASB (2.4%) slightly higher, BT / Westpac (0.3%) flat and AMP (-6.1%) lower. Meanwhile Milford (21.6%) and a couple of smaller companies BNZ (27.5%) and Booster (12.6%) reported double digit annual growth rates.

During the latest March quarter reported Gross Inflows jumped 25.9% to NZ$10.4bn, while year on year they were up by 28.5%. Meanwhile corresponding Outflows increased even more sharply, up by a third, implying the past year was a period of higher volatility. Very significant annual Inflow growth was experienced by almost all participants including in particular some well over 30% increases that were reported by Milford (76.0%), Generate (58.2%), Fisher (52.5%), BNZ (49.5%), ANZ (38.0%) and Mercer (37.9%).

Source: Plan For Life

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