5655.0 - Managed Funds, Australia, Dec 2010  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 25/02/2011   
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ANALYSIS


MANAGED FUNDS INDUSTRY

At 31 December 2010 the managed funds industry had $1,793.0b funds under management, an increase of $42.1b (2%) on the September quarter 2010 figure of $1,750.9b. This increase was driven primarily by the increase in consolidated assets of managed funds institutions of $29.6b and the increase in funds managed by resident investment managers on behalf of Australian entities other than managed funds institutions of $10.8b.

The following diagram shows the value of the Total Managed Funds Industry at 31 December 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 31 December 2010 the consolidated assets of managed funds institutions were $1,422.7b, an increase of $29.6b (2%) on the September quarter 2010 figure of $1,393.1b.

Total Consolidated Assets
Graph: Total Consolidated Assets



Consolidated assets by types of asset

The asset types to increase during the quarter were shares, $16.5b (4%); land, buildings and equipment, $4.9b (3%); units in trusts, $3.5b (2%); deposits, $2.5b (1%); overseas assets, $2.4b (1%); bonds, $1.4b (2%) and other financial assets, $1.1b (3%). The asset types to decrease were derivatives, $1.3b (35%); other non-financial assets, $0.9b (5%); loans and placements, $0.4b (1%) and short term securities, $0.2b (0.2%);

The following chart shows the level at 31 December 2010 of the asset types of Managed Funds Institutions.

Managed funds institutions assets
Graph: Managed funds institutions assets



UNCONSOLIDATED ASSETS

Life insurance corporations

At 31 December 2010, total unconsolidated assets of life insurance corporations were $232.7b, an increase of $2.1b (1%) on the September quarter 2010 figure of $230.6b. The largest increases were in units in trusts, $2.9b (2%) and bonds etc, $1.4b (8%). These were partially offset by decreases in short term securities, $0.7b (7%), assets overseas, $0.6b (6%), deposits, $0.5b (6%), shares, $0.2b (1%) and other non-financial assets, $0.1b (3%). Cross investment within life insurance corporations was $1.0b, virtually the same as the previous quarter. Net policy liabilities increased by $2.9b (1%) to $206.7b; debt securities issued decreased by $0.3b (14%); loans and placements decreased by $0.2b (18%) and other liabilities decreased by $0.2b (3%).

Life Insurance corporations
Graph: Life Insurance corporations



Superannuation (pension) funds

At 31 December 2010, total unconsolidated assets of superannuation funds were $1,278.4b, an increase of $39.8b (3%) on the September quarter 2010 figure of $1,238.6b. The largest increases were in holdings of shares, $18.9b (5%); units in trusts, $8.1b (5%); net equity of pension funds in life office reserves, $3.7b (2%); deposits, $2.7b (2%); and short term securities, $2.4b (5%). These were offset by a decrease in other financial assets, $1.5b (8%). Members' funds and reserves increased by $41.0b (3%) to $1,262.5b.

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



Public offer (retail) unit trusts

At 31 December 2010 total unconsolidated assets of public offer (retail) unit trusts were $286.4b, an increase of $3.4b (1%) on the September quarter 2010 figure of $282.9b. The largest increases were in holdings of land, buildings and equipment, $3.9b (5%); other financial assets, $2.2b (53%) and units in trusts, $2.0b (3%). These were offset by decreases in holdings in shares, $1.8b (5%) and derivatives, $1.3b (41%). Cross investment within public unit trusts was $34.1b, which increased $1.5b (5%), from the September quarter 2010 figure of $32.6b. Investor funds increased $3.7b (2%); debt securities issued increased $3.2b (52%) while loans and placements liabilities decreased $5.6b (16%).

Public Offer Unit Trusts
Graph: Public Offer Unit Trusts



Friendly societies

At 31 December 2010 total unconsolidated assets of friendly societies were $6.4b, a decrease of $0.1b (2%) on the September quarter 2010 figure of $6.5b. The largest decreases were in deposits, $0.06b (15%) and short term securities, $0.06b (9%). Net policy liabilities decreased by $0.2b (3%).

Friendly societies
Graph: Friendly societies



Common funds

At 31 December 2010 total unconsolidated assets of common funds were $7.2b, virtually unchanged from the September quarter 2010.

Common funds
Graph: Common funds



Cash management trusts

At 31 December 2010 the total unconsolidated assets of cash management trusts were $27.1b, a decrease of $2.1b (7%) on the September quarter 2010 figure of $29.1b. The largest decreases were in holdings of short term securities, $2.1b (11%) and bonds etc., $0.8b (39%). These were partially offset by an increase in deposits of $0.8b (15%). Cross investment within cash management trusts was $1.3b, virtually unchanged from the September quarter. Investor funds decreased by $2.1b (7.1%) to $27.0b.

Cash management trusts
Graph: Cash management trusts



RESIDENT INVESTMENT MANAGERS

Source of funds under management

At 31 December 2010 total funds under management was $1,178.6b, an increase of $34.5b (3%) on the September quarter 2010 figure of $1,144.1b.

The value of funds under management on behalf of superannuation funds increased $18.3b (4%); public offer (retail) unit trusts increased $2.2b (2%); life insurance corporations increased $0.5b (0.4%); and cash management trusts decreased $0.2b (1.4%).

At 31 December 2010, the value of funds under management on behalf of sources other than managed funds was $326.8b, an increase of $10.8b (3%) on the September quarter 2010 figure of $316.0b. The largest increases were in funds under management on behalf of wholesale financial trusts, $6.7b (5%); and non-government trading corporations, $2.3b (12%). These were partially offset by a decrease in funds under management on behalf of national government, $2.0b (4%).

The value of funds under management on behalf of overseas sources at 31 December 2010 was $57.1b, an increase of $2.9b (5%) on the September quarter 2010 figure of $54.1b.

Assets of managed funds, at 31 December 2010

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

Life insurance corporations
128 838
103 872
232 710
Superannuation funds
522 640
755 753
1 278 393
Public offer unit trusts
121 295
165 061
286 356
Friendly societies
1 271
5 119
6 390
Common funds
4 255
2 988
7 243
Cash management trusts
16 479
10 637
27 116
Total
794 778
1 043 430
1 838 208