5655.0 - Managed Funds, Australia, Dec 2018  
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ANALYSIS


MANAGED FUNDS INDUSTRY

At 31 December 2018, the managed funds industry had $3,425.2b funds under management, a decrease of $122.4b (3.5%) on the September quarter 2018 figure of $3,547.6b. Decreases were recorded in the consolidated assets of managed funds institutions, $94.9b (3.3%); funds managed by Australian investment managers on behalf of Australian entities other than managed funds institutions, $22.5b (4.1%) and funds managed by Australian investment managers on behalf of overseas investors, $5.4b (4.3%).

The following diagram shows the total value of the managed funds industry at 31 December 2018 and the relationship between the various components of the industry:

Diagram: MANAGED FUNDS INDUSTRY


MANAGED FUNDS INSTITUTIONS

Consolidated assets of managed funds institutions

At 31 December 2018, the consolidated assets of managed funds institutions were $2,786.6b, a decrease of $94.9b (3.3%) on the September quarter 2018 figure of $2,881.5b.

Total Consolidated Assets
Graph: This graph shows the percentage growth of consolidated assets of managed funds institutions.



Consolidated assets by types of asset

The asset types that decreased were shares, $41.4b (8.1%); units in trusts, $34.3b (4.4%); overseas assets, $24.2b (4.7%); derivatives, $3.6b (9.4%) and deposits, $1.7b (0.6%). These were partially offset by increases in other financial assets, $3.8b (1.6%); bonds, etc., $3.3b (3.5%); land, buildings and equipment, $1.7b (0.6%); loans and placements, $0.5b (1.2%); short term securities, $0.5b (0.6%) and other non-financial assets, $0.3b (2.9%).

Managed funds institutions, quarterly change in assets
Graph: Survey of Financial Information



UNCONSOLIDATED ASSETS

Life insurance corporations

At 31 December 2018, total unconsolidated assets of life insurance corporations were $228.5b, a decrease of $11.7b (4.9%) on the September quarter 2018 figure of $240.2b.

Decreases were recorded in units in trusts, $10.6b (6.8%); shares, $1.2b (5.2%); other financial assets, $0.4b (5.8%); assets overseas, $0.2b (1.2%); loans and placements, $0.2b (3.3%); short term securities, $0.1b (7.0%) and other non-financial assets, $0.1b (1.9%). These were partially offset by increases in bonds, etc., $0.7b (3.0%) and deposits, $0.1b (1.3%).

Cross investment within life insurance corporations was $6.6b, a decrease of $0.5b (7.4%) compared to the September quarter 2018.

Net policy liabilities were $176.4b, a decrease of $9.9b (5.3%) compared to the September quarter 2018.

Life Insurance Corporations
Graph: Life Insurance Corporations



Superannuation (pension) funds

At 31 December 2018, total unconsolidated assets of superannuation funds were $2,670.7b, a decrease of $107.2b (3.9%) on the September quarter 2018 figure of $2,777.9b.

Decreases were recorded in units in trusts, $41.3b (4.3%); shares, $37.4b (8.1%); assets overseas, $22.6b (5.0%); net equity of pension funds in life office reserves, $9.8b (7.2%); derivatives, $4.4b (12.6%) and deposits, $1.4b (0.6%). These were partially offset by increases in other financial assets, $3.2b (1.4%); bonds, etc., $2.5b (4.3%); short term securities, $1.9b (3.6%); land, buildings and equipment, $1.8b (1.1%) and other non-financial assets, $0.2b (11.7%). Loans and placements were flat.

Superannuation (Pension) funds
Graph: This graph shows the percentage growth of superannuation (pension) funds' assets.



Public offer (retail) unit trusts

At 31 December 2018, total unconsolidated assets of public offer (retail) unit trusts were $374.7b, a decrease of $6.6b (1.7%) on the September quarter 2018 figure of $381.4b.

Decreases were recorded in units in trusts, $3.6b (4.0%); shares, $3.5b (9.2%); assets overseas, $1.4b (3.0%) and deposits, $0.3b (3.6%). These were partially offset by increases in other financial assets, $0.8b (15.5%); loans and placements, $0.7b (2.2%); derivatives, $0.5b (21.6%) and other non-financial assets, $0.2b (3.6%). Short term securities, land, buildings and equipment and bonds, etc. were flat.

Public Offer Unit Trusts
Graph: This graph shows the percentage growth of public offer unit trusts' assets.



Friendly societies

At 31 December 2018, total unconsolidated assets of friendly societies were $7.2b, a decrease of $0.3b (3.5%) on the September quarter 2018 figure of $7.5b.

Friendly societies
Graph: This graph shows the percentage growth of friendly societies' assets.



Common funds

At 31 December 2018, total unconsolidated assets of common funds were $10.8b, a decrease of $0.1b (1.3%) on the September quarter 2018 figure of $11.0b.

Common funds
Graph: This graph shows the percentage growth of common funds' assets.



Cash management trusts

At 31 December 2018, total unconsolidated assets of cash management trusts were $37.9b, a decrease of $1.5b (3.9%) on the September quarter 2018 figure of $39.4b.

Decreases were recorded in short term securities, $1.3b (5.1%); deposits, $0.1b (0.8%) and bonds, etc., $0.1b (2.3%). Non-financial assets, loans and placements and derivatives were flat.

Cash management trusts
Graph: This graph shows the percentage growth of cash management trusts' assets.



RESIDENT INVESTMENT MANAGERS

Source of funds under management

At 31 December 2018, total funds under management were $2,087.6b, a decrease of $75.2b (3.5%) on the September quarter 2018 figure of $2,162.8b.

Funds under management on behalf of superannuation funds decreased $37.2b (3.2%), life insurance corporations decreased $6.5b (4.5%) and public offer (retail) unit trusts decreased $3.6b (2.6%). Cash management trusts increased $0.1b (0.5%).

At 31 December 2018, the value of funds under management on behalf of sources other than managed funds was $530.2b, a decrease of $22.5b (4.1%) on the September quarter 2018 figure of $552.6b.

Decreases were recorded in funds under management on behalf of wholesale financial trusts, $10.7b (4.8%); national government, $5.9b (5.3%); other sources, $2.0b (3.9%); state and local government, $1.1b (2.3%); government compensation schemes, $1.0b (3.7%); non-government trading corporations, $0.9b (2.2%); general insurance, $0.4b (1.0%); other investment managers, $0.3b (2.6%) and charities, $0.2b (13.3%).

The value of funds under management on behalf of overseas sources at 31 December 2018 was $119.9b, a decrease of $5.4b (4.3%) on the September quarter 2018 figure of $125.3b.

Assets of Managed Funds - December Quarter 2018

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

December Quarter 2018
Life insurance corporations
139 502
88 975
228 477
Superannuation (pension) funds
1 136 851
1 533 841
2 670 693
Public offer (retail) unit trusts
135 421
239 322
374 743
Friendly societies
np
np
7 224
Common funds
np
np
10 834
Cash management trusts
21 958
15 937
37 895
Total
1 437 484
1 892 382
3 329 866

np not available for publication but included in totals where applicable, unless otherwise indicated