KiwiSaver Funds Lead Quarterly Growth

WELLINGTON — New Zealand’s funds under management rose by 7.5% in the third quarter of 2025, reaching $254.4 billion NZD, according to the latest report by PFL New Zealand. This growth was driven by strong investment outcomes and substantial net fund inflows.

David Gallagher, executive director of research at Rainmaker Information, attributed the quarterly rise to a combination of net fund inflows and positive investment results. “KiwiSaver funds achieved the highest growth in dollar terms, while managed funds and unit trusts showed the greatest percentage increase,” Gallagher explained.

The annual growth rate of 18.5% saw funds under management rise from $214.7 billion NZD to $254.4 billion NZD. Of this growth, $22.9 billion NZD was due to investment earnings, $14.2 billion NZD from net inflows, and $2.6 billion NZD from transfers.

Investment Earnings and Market Dynamics

Gallagher noted that growth products experienced the largest increase in funds under management, expanding from $66.7 billion NZD to $82.4 billion NZD. “Balanced investment products also saw a significant rise in market share, increasing by 148 basis points,” he said.

While international equities across Europe, America, and Asia Pacific reported substantial percentage increases, their overall market share saw a slight dip. In contrast, domestic property securities experienced a decrease in funds under management.

Amongst asset managers, Milford Asset Management stood out, increasing its funds by $7.9 billion NZD and capturing the largest market share increase of 154 basis points. FundRock followed closely with a 100 basis point growth in market share.

These developments come amidst a period of significant investor interest in diversified asset classes. The sector has seen a shift as investors seek to optimise returns in a fluctuating global market.

Source: newshub.medianet.com.au