Value of managed funds in New Zealand - Data and Analysis (2005-2034)

IBISWorld forecasts the value of managed funds to swell by 7.5% in 2026-27, to reach $392.3 billion. The Reserve Bank of New Zealand has raised the official cash rate to 2.75% to counter a spike in inflation, but the rate remains low compared with recent years and is expected to hold near 2.8% over the year, sustaining the appeal of growth assets relative to term deposits and other low-risk investments.Funds under management surged in 2020-21 as ultra-low interest rates and a sharp rebound in equity markets drove strong capital gains. The Reserve Bank began lifting the official cash rate in late 2021 to combat inflation, which slowed growth to just 2.0% in 2022-23 as share prices flattened and investors shifted towards fixed-income securities. Growth has since rebounded strongly as inflation eased and interest rates fell. KiwiSaver has remained a reliable source of new capital throughout, with rising enrolments and contributions adding to fund balances regardless of market conditions.The value of managed funds rose by 10.8% in 2025-26 to $364.9 billion, marking a third consecutive year of double-digit growth. Overseas equities have been the main engine of this growth, with the S&P 500 climbing 16.3% over the year to March 2026. New Zealand-managed funds hold a growing share of foreign assets in their portfolios, meaning global markets now have a stronger influence on fund values than the NZX 50, which grew at a more modest pace over the same period.Funds under management reached $395.9 billion in the June 2026 quarter, supported by a recovery in global equity markets and steady KiwiSaver contributions. However, higher interest rates and market volatility could drive values lower by the end of the year, although this outcome seems unlikely, as the country's current economic climate has neccesitated structurally lower interest rates, which will likely remain for the remainder of the 2026-27 financial year. IBISWorld forecasts that the value of managed funds will expand at a compound annual rate of 8.6% over the five years through the end of 2026-27.