Timely focus on retail investors helps drive AUM growth

Nikko Asset Management’s timely focus on retail investors helps drive AUM growth

Increasing demand from retail investors for investment products, at a time when term deposit rates have been at historic lows, has driven retail investor assets under management (AUM) at Nikko Asset Management New Zealand to $675 million in June 2015, more than a 200 percent increase since March 2014.

Nikko Asset Management NZ’s net inflows have increased more than $100 million in the second quarter alone due to a deliberate focus on the intermediated retail market and increased commitment to engaging with retail investors as demand for quality investment opportunities grows. The significant boost in the retail business has helped drive the company’s total AUM to $4.5 billion, a $300 million increase since December 2014, making Nikko Asset Management the largest asset manager in New Zealand that is not a default KiwiSaver provider

“While traditionally we focused on institutional clients, we recognised the opportunity to respond to increasing retail investor demand for access to our investment management approach,” said Peter Lynn, managing director at Nikko Asset Management New Zealand. “In an environment where term deposit rates have been historically low, people are searching for reputable, high-performing investment managers to access the more buoyant stock and bond markets.”

All of the funds provided by Nikko Asset Management NZ to retail investors through Authorised Financial Advisers or RaboDirect grew their assets over the past year. While initial interest was primarily in domestic fixed income and global equity funds, investor interest in funds focussed on domestic equities is also growing.

“To build on this momentum we launched a new investor-friendly website in June and we’re also actively engaged with Authorised Financial Advisors through our seminars that provide professional development credits that are required by the Financial Markets Authority,” said Lynn.

"We’re pleased to see our efforts to grow our share of the intermediated retail market deliver in such a short period of time. We put our overall growth down to our robust investment philosophy and our access to global expertise and research as the only dedicated global fund manager in New Zealand.”

Nikko Asset Management NZ is the New Zealand subsidiary of Tokyo-based Nikko Asset Management, which held approximately US$161.9 billion (NZ$241 billion) in AUM as of March 2015.

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