Investors pulled their money out of cash funds in March, as interest rates dropped and sought better returns elsewhere.
The research company FundSource says investors withdrew $69.5 million from New Zealand Cash Funds, the first outflow since December 2007.
At the same time, retail managed funds attracted $221 million.
Overall, total net funds under management dropped by $225 million, or 1.6%, to $15.31 billion.
