2 Feb 2010

Retail funds up, but mortgage sector down

12:19 pm on 2 February 2010

Retail managed funds continued to appeal to investors in the December quarter, with an extra $253 million flowing into the sector.

Research company FundSource says KiwiSaver funds experienced the largest inflows for the quarter - reaching $424 million.

Unit trusts gained an extra $104 million.

The diversified sector continued to experience strong inflows, as did cash and fixed interest funds.

But FundSource says the mortgage sector continues to haemorrhage, with $232 million withdrawn during the quarter.

Group investment funds also declined, down $184 million on the previous quarter.

Overall, $19.5 billion was under management in the December quarter - up more than 6% from the previous quarter.