| Quarter | Total Funds flows |
| Sept 07 | -$633.9m |
| June 07 | -$162.6m |
| March 07 | +$89.7m |
Net retail funds under management declined 3.5% in the September quarter ($739.0m), the largest percentage decline since March 2003.
According to FundSource, there are several likely reasons for this, including:
• restructuring by fund managers,
• ‘contagion effect’ following volatility in world share markets, and
• difficulties in the non-bank finance company sector within New Zealand.
• increased attractiveness of bank deposits with New Zealand’s high cash rate.
However, the significant changes brought to the industry through the introduction of KiwiSaver funds and more recently, the PIE (portfolio investment entity) regime with its tax benefits should see fund flows improve markedly going forward.
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