| Annual Review 1999 - Funds Under Management |
Funds Under Management
Unlisted retail investment
funds under management by New Zealand fund managers as at 30 June 1999 amounted to $15.12
billion. There was another $1.34 billion in Australian unit trusts sold in New Zealand,
$1.77 billion in listed managed investments and $7.1 billion in non-investment linked life
insurance.
Net funds flow into unlisted retail managed investments
increased by $1.27 billion (227%) compared with the previous June year, with net inflow to
30 June 1999 of $1.83 billion.
The increased fund inflow can be attributed at least
partly to lower interest rates available on bank deposits, and possibly also to increased
public understanding of and confidence in managed funds.
Unit trusts had the greatest net funds inflow, with
superannuation trusts the next most popular category, and a return to positive net inflows
for group investment funds. Funds under management in insurance bonds, however, continued
their gradual decline following the removal of the taxation benefits provided by the
superannuation surcharge.
Source:Morningstar Research Ltd
