1301.0 - Year Book Australia, 2012
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 24/05/2012
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Statistics contained in the Year Book are the most recent available at the time of preparation. In many cases, the ABS website and the websites of other organisations provide access to more recent data. Each Year Book table or graph and the bibliography at the end of each chapter provides hyperlinks to the most up to date data release where available.
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MANAGED FUNDS
The term 'managed funds' is used loosely in the financial community to embrace two broad types of institutions. The first are managed funds institutions (such as life insurance companies, superannuation funds and unit trusts), which buy assets on their own account. The second are investment or fund managers, which act as investment agents for the managed funds institutions, as well as others with substantial funds to invest. Investment managers have relatively small balance sheets because most of the assets they manage are purchased on behalf of clients. The 'managed funds total assets' (graph 27.25) represents assets of managed funds institutions only. The growth in the assets of superannuation funds between 2006 and 2007 coincides with changes to superannuation legislation in June 2007 designed to attract investor funds. The decrease in the assets of managed funds from 2007 to 2009 largely reflects fluctuations in stock market valuations, particularly as a result of the global financial crisis, which began in late 2007.
The managed funds industry is difficult to measure because of the large value of financial interaction between managed funds institutions and fund managers, and between fund managers. Consequently, double counting of funds, which are 'churning' through the system is a problem to be addressed in order to derive a true measure of the funds management industry. One approach is to take the consolidated assets of collective investment institutions, add to them those funds managed on behalf of other clients such as governments, corporations, charities, overseas clients then, 'net-off' funds sourced from other domestic fund managers. Table 27.26 provides this measure of the total funds management industry.
MANAGED FUNDS INSTITUTIONS
Managed funds institutions pool the funds of many small to medium investors and use them to buy a particular type, or mix, of assets. The asset profile can be structured to satisfy individual investor requirements regarding the degree of risk, the mix of capital growth and income, and the degree of asset diversification. Managed funds institutions in ABS statistics comprise the following:
Funds of a speculative nature that do not offer sufficiently liquid redemption facilities (e.g. agricultural and film trusts) are excluded.
To derive the total assets of each type of managed funds institution in Australia on a consolidated basis, it is necessary to eliminate the cross investment between the various types of institution. For example, investments by superannuation funds in public unit trusts are excluded from the assets of superannuation funds in a consolidated presentation. Table 27.27 shows consolidated assets by type of asset.
(a) A full list can be found in the glossary of Managed Funds, Australia (5655.0).
INVESTMENT MANAGERS
Investment managers are employed on a 'fee-for-service' basis to manage and invest in approved assets, on their clients' behalf. They mainly act as the managers of pooled funds, but also manage clients' investments on an individual portfolio basis. Investment managers offer their services to a range of clients, including superannuation funds, life insurance corporations, publically listed corporations, government entities and high net worth individuals.
A considerable proportion of the assets of managed funds institutions are managed via investment managers. At 30 June 2011, $799.8 billion (43% of the unconsolidated assets of managed funds institutions) were channelled through investment managers. Investment managers also accept funds from investors other than managed funds institutions. At 30 June 2011, investment managers invested $386.8 billion on behalf of government bodies, general insurers and other clients, including overseas clients.
Table 27.28 shows the total unconsolidated assets of each type of managed fund institution, and the value of these assets invested through investment managers.