5655.0 - Managed Funds, Australia, Sep 2010  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 03/12/2010   
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ANALYSIS


MANAGED FUNDS INDUSTRY

At 30 September 2010 the managed funds industry had $1,706.6b funds under management, an increase of $36.6b (2%) on the June quarter 2010 figure of $1,670.0b. This increase was driven primarily by the increase in consolidated assets of managed funds institutions of $33.3b.

The following diagram shows the values of the Total Managed Funds Industry at 30 September 2010 and the relationships between the components of this industry.

Diagram: Managed funds industry


MANAGED FUNDS INSTITUTIONS

Consolidated assets of managed funds institutions

As at 30 September 2010 the consolidated assets of managed funds institutions was $1,357.4b, an increase of $33.3b (3%) on the June quarter figure of $1,324.1b.

Total Consolidated Assets
Graph: Total Consolidated Assets



Consolidated assets by types of asset

The major asset types to increase during the quarter were shares, $29.8b (8%); deposits, $8.3b (5%); overseas assets, $4.8b (2%); and land, buildings and equipment, $2.2b (1%). These were offset by decreases in short term securities, $13.1b (13%); bonds, etc, $3.6b (4%); other non-financial assets, $0.3b (1%); and derivatives, $0.1b (3%).

The following chart shows the level at 30 September 2010 of the asset types of Managed Funds Institutions.

Managed funds institutions assets
Graph: Managed funds institutions assets



UNCONSOLIDATED ASSETS

Life insurance corporations

At 30 September 2010, total unconsolidated assets of life insurance corporations were $230.6b, an increase of $7.2b (3%) on the June quarter figure of $223.3b. The major increases were in units in trusts, $6.1b (4%); shares, $1.6b (10%); assets overseas, $0.5b (5%) and loans and placements, $0.2b (6%). These were partially offset by decreases in short term securities, $0.9b (8%), bonds etc, $0.3b (1%), other non-financial assets, $0.3b (9%), and derivatives, $0.1b (20%). Cross investment within life insurance corporations was $1.0b, virtually the same as the previous quarter. Net policy liabilities increased by $5.8b (3%) to $203.9b; loans and placements decreased by $0.2b (12%); other liabilities increased by $1.0b (18%) and share capital and reserves increased $0.6b (4%).

Life Insurance Corporations
Graph: Life Insurance Corporations



Superannuation (pension) funds

At 30 September 2010, total unconsolidated assets of superannuation funds were $1,250.9b, and increase of $58.1b (5%) on the June quarter figure of $1,192.7b. The major increases were in holdings of shares, $27.9b (9%), units in trusts, $13.9b (9%), deposits, $9.1b (6%), assets overseas, $6.0b (4%), net equity in life office reserves, $5.0b (3%) and land, buildings and equipment, $2.9b (4%). These were offset by decreases in holdings of short term securities, $3.9b (7%), bonds, $2.8b (5%) and other financial assets, $2.1b (10%). Members' funds and reserves increased $57.1b (5%) to $1,233.5b.

Superannuation (pension) funds
Graph: Superannuation (pension) funds



Public offer (retail) unit trusts

At 30 September 2010 total unconsolidated assets of public offer (retail) unit trusts were $280.4b, a decrease of $1.3b (1%) on the June quarter figure of $281.7b. The largest increases were in holdings of units in trusts, which increased $1.2b (2%), and holdings in shares, which increased $0.4b (1%). These were offset by decreases in holdings of assets overseas, $1.6b (4%), short term securities, $0.6b (14%), and bonds etc., $0.4b (7%). Cross investment within public unit trusts was $28.7b, which decreased $0.1b (1%), from the June quarter 2010 figure of $28.8b. Investor funds decreased $0.8b (0.4%); debt securities issued decreased $0.6b (9%) and loans and placements liabilities increased $1.2b (4%).

Public Offer Unit Trusts
Graph: Public Offer Unit Trusts



Friendly societies

At 30 September 2010 total unconsolidated assets of friendly societies were $6.5b, an increase of $0.3b (4%) on the June quarter 2010 figure of $ 6.3b. The main increases were in holdings of units in trusts, $0.2b (6%) and equities, $0.2b (5%). Net policy liabilities increased by $0.2b (4%).

Friendly societies
Graph: Friendly societies



Common funds

At 30 September 2010 total unconsolidated assets of common funds were $7.2b, a decrease of $0.2b (3%) on the June quarter 2010 figure of $7.4b. The main decreases were in holdings of units in trusts of $0.2b (6%) and bonds etc. of $0.1b (10%). These were partially offset by an increase in holdings of short term securities of $0.1b (17%). Cross investment within common funds was $54m, an increase of $6m (13%) on the June quarter 2010 figure.

Common funds
Graph: Common funds



Cash management trusts

At 30 September 2010 the total unconsolidated assets of cash management trusts were $29.2b, a decrease of $9.1b (24%) on the June quarter figure of $38.2b, due primarily to the closure of a large cash management trust. The major decreases were in holdings of short term securities, $7.9b (29%) and deposits, $1.0b (13%). Cross investment within cash management trusts was $1.3b, an increase of $0.02b (2%) on the June quarter figure. Investor funds decreased by $9.1b (23%) to $29.0b.

Cash management trusts
Graph: Cash management trusts



RESIDENT INVESTMENT MANAGERS

Source of funds under management

During the September quarter 2010 total funds under management was $1,141.1b, an increase of $26.6b (2%) on the June quarter 2010 figure of $1,114.5b.

The value of funds under management on behalf of: superannuation funds increased $33.1b (7 %); public offer (retail) unit trusts increased $3.2b (3%); life insurance corporations decreased $0.7b (1%); and cash management trusts decreased $9.3b (35%) due in part to the closure of a large cash management trust.

At 30 September 2010, the value of funds under management on behalf of sources other than managed funds was $309.9b, a decrease of $2.6b (1%) on the June quarter 2010 figure of $312.5b. The largest increases were in funds under management on behalf of wholesale financial trusts, $2.4b (2%); and non-government trading corporations, $2.1b (12%). These were partially offset by decreases in funds under management on behalf of national government, $4.5b (9%) and other sources, $2.1b (9%).

The value of funds under management on behalf of overseas sources at 30 September 2010 was $51.8b, an increase of $2.8b (6%) on the June quarter 2010 figure of $49.0b.

Assets of managed funds, at 30 September 2010

Assets invested through investment managers
Assets invested directly
Unconsolidated assets of managed funds
$m
$m
$m

Life insurance corporations
128 080
102 487
230 567
Superannuation funds
509 044
741 813
1 250 857
Public offer unit trusts
119 474
160 920
280 394
Friendly societies
1 273
5 259
6 532
Common funds
3 880
3 354
7 234
Cash management trusts
17 607
11 547
29 154
Total
779 358
1 025 380
1 804 738