Nikko Asset Management NZ grows AUM to over $5 billion

Nikko Asset Management NZ grows AUM to over $5 billion

Nikko Asset Management New Zealand’s assets under management (AUM) now exceeds NZ$5 billion, up from $4 billion in December 2014, an increase of 25 percent. One area of growth in its AUM has been retail investment, which now tops $1 billion, up from just over $500 million as at December 2014.

“We’re pleased to see our efforts to grow our share of the intermediated retail market continuing to deliver, and to be able to provide an increasing number of retail investors with access to our investment approach,” said George Carter, Managing Director of Nikko Asset Management New Zealand.

Morningstar’s Market Share Report (March Quarter 2016) ranks Nikko Asset Management NZ as number one for fund flows for the retail investment market excluding KiwiSaver for the year to 31 March 2016.
Retail investors access Nikko Asset Management NZ’s funds through Authorised Financial Advisers (AFAs) or RaboDirect. Nikko Asset Management has been actively engaging with AFAs through seminars that provide professional development credits that are required by the Financial Markets Authority.

Other key drivers of growth in AUM are at the institutional level, with new clients coming on board and existing clients allocating more funds to Nikko Asset Management NZ. This included a new mandate to manage private health insurer nib New Zealand’s investment funds of over $100 million, following a competitive review process in June 2015.

“At the asset class level, NZ Fixed Income has experienced particularly strong growth, which reflects the market’s view of our Fixed Income team’s track record and investment approach. Investor interest in funds focused on domestic equities is also growing, alongside interest in domestic fixed income,” said Carter.

Nikko Asset Management NZ is now the largest asset manager in New Zealand that is not part of a default KiwiSaver provider group, according to FundSource’s Wholesale and Retail Managed Funds Report, March Quarter 2016.

“We believe our success is due to our deep local investment expertise and local autonomy, combined with our ability to draw on the insights and resources of our global parent company, which means we are uniquely positioned to deliver for our clients in New Zealand,” said Carter.

Nikko Asset Management New Zealand is the New Zealand subsidiary of Tokyo-based Nikko Asset Management, which held approximately US$153.7 billion (NZ$225 billion) in AUM as of December 2015.

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