Devon Funds lists funds under management to $923 mln on KiwiSaver, roaring stocks

Tuesday 30th April 2013

Devon Funds Management lifted funds under management by 14 percent last year on a combination of KiwiSaver inflows and strong gains in New Zealand equities.

Funds under management at the fund manager, , founded by Paul Glass in 2010, rose to $922.6 million from $807.9 million a year earlier, according to its 2012 financial statements. Fund management fees rose 45 percent to $5.1 million.

Profit in the latest year rose to $920,776 from $753,397 though Glass said the numbers had to be read with caution because of the way expenses are allocated and management fees paid to Devon's parent company. Some $3.6 million in management fees were paid to immediate parent Devon Funds Group, up from $2.4 million in 2011.

Like most fund managers with KiwiSaver products, Devon has benefitted from growth in the amount of money kiwis are putting aside for their retirement, with KiwiSaver funds having grown to $13.65 billion as at Dec. 31 from $954 million at June 2008, according to Morningstar.

Devon, which specialises in investing in companies listed on the NZX and ASX, has also been helped by strong gains in stocks, with the NZX 50 Index gaining about 25 percent in 2012, and having increased about 12 percent so far this year.

"With interest rates staying very low, equities are a good asset class for investors," Glass said.

Glass, one of the founders of Brook Asset Management, took on several key staff from that firm when he set up Devon, prompting the Macquarie-owned Brook to sue the new rival. The two firms came to a confidential settlement in early 2012.

BusinessDesk.co.nz

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