Total fund inflows into KiwiSaver in the year to June 30 rose 12% to NZ$2.6 billion, helping to more than double the total net funds flow into investment funds to NZ$2.8 billion for the year, Fundsource has reported.
Net fund flows into retail managed funds were NZ$568 million in June quarter, including NZ$513 million into KiwiSaver funds.
The total net fund flows in the June quarter were down from NZ$821 million in the March quarter.
"Inflows into KiwiSaver have continued to be the key driver of the growth in funds flow over the past few years, albeit at a slower rate," Fundsource said in its June 2011 Retail Managed Funds Industry Trends & Market Composition Report.
"Apart from Kiwisaver, there is a bleak trend for other investment vehicles including Group Investment Funds, Superannuation Funds, Insurance Bonds and Australian Unit Trusts," Fundsource said.
"These categories have experienced ongoing fund outflows with Superannuation Funds and Group Investment Funds topping at NZ$251 million and NZ$41 million respectively in the June quarter. The total net fund inflow for sectors other than KiwiSaver stood at NZ$168 million for the year ending June 2011," it said.
Total funds under management were flat in the second quarter of 2011 to stand at NZ$25.1 billion for the year ending June 2011.
"This can be attributed to the weak performance of world equity markets amid ongoing Eurozone debt concerns and faltering growth in the US economy coupled with a record high New Zealand dollar."
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