Generate rakes in new FUM

Adviser-distributed Generate KiwiSaver grew its funds under management by just over a quarter in the three months to the end of June, a new survey shows.

Aon has released its KiwiSaver survey for the June quarter, which shows overall FUM increased by 4%, to $32.9 billion.

But Generate was a standout performer, with a 28.4% increase in FUM over the period. That takes it to 0.7% of the total KiwiSaver market – still the second-smallest provider.

Milford and BNZ followed with 7.8% increases.

Banks still dominate the KiwiSaver market – the big five manage 67.5 % of the assets under management in KiwiSaver and have grown their FUM by $925 million over the last quarter and $2 billion this year. ANZ is by far the biggest provider, with 26.1% of funds under management, or just under $9 billion. It is followed by ASB, with 18.9% or just over $6 billion.

The Milford Active Growth Fund was the standout performing over the year, returning more than 9%. Aon’s survey shows returns after fees and tax.

But conservative funds did the best in the quarter – Fisher Funds and Milford’s conservative options returned 1.8%.

Since the inception of KiwiSaver, Fisher Funds’ growth fund has been the star performing, delivering 8.2 per cent per year.

The Aon survey shows that across the board, managers are now slightly overweight to cash but underweight on international and New Zealand equities.

Generate was not available to comment.