5655.0 - Managed Funds, Australia, Jun 2018  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 06/09/2018   
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ANALYSIS


MANAGED FUNDS INDUSTRY

At 30 June 2018, the managed funds industry had $3,491.6b funds under management, an increase of $73.2b (2.1%) on the March quarter 2018 figure of $3,418.4b. Increases were recorded in consolidated assets of managed funds institutions, $62.0b (2.2%); funds managed by Australian investment managers on behalf of Australian entities other than managed funds institutions, $12.5b (2.3%). These were partially offset by decreases in funds managed by Australian investment managers on behalf of overseas investors, $1.2b (0.9%).

The following diagram shows the total value of the managed funds industry at 30 June 2018 and the relationship between the various components of the industry:

Diagram: This Diagram shows the flows of money within the managed funds industry


MANAGED FUNDS INSTITUTIONS

Consolidated assets of managed funds institutions

At 30 June 2018, the consolidated assets of managed funds institutions were $2,827.3b, an increase of $62.0b (2.2%) on the March quarter 2018 figure of $2,765.3b.

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 increased were shares, $36.8b (7.6%); units in trusts, $13.6b (1.8%); deposits, $4.5b (1.7%); land, buildings and equipment, $4.4b (1.5%); bonds, etc., $4.1b (4.7%); other financial assets, $3.7b (1.6%). These were partially offset by decreases in loans and placements, $3.3b (7.1%); overseas assets, $0.9b (0.2%); short term securities, $0.6b (0.7%); other non-financial assets, $0.4b (3.8%). Derivatives were flat.

Managed funds institutions, quarterly change in assets
Graph: This chart shows the types of managed funds institution assets in the current quarter.



UNCONSOLIDATED ASSETS

Life insurance corporations

At 30 June 2018, total unconsolidated assets of life insurance corporations were $240.6b, an increase of $1.5b (0.6%) on the March quarter 2018 figure of $239.1b.

Increases were recorded in units in trusts, $2.6b (1.7%); shares, $0.4b (1.9%); deposits, $0.4b (6.1%). These were partially offset by decreases in other financial assets, $0.6b (9.5%); bonds, etc., $0.6b (2.8%); derivatives, $0.3b (27.1%); assets overseas, $0.2b (1.4%); other non-financial assets, $0.1b (2.8%); short term securities, $0.1b (4.6%). Land, buildings and equipment; and loans and placements were flat.

Net policy liabilities were $186.5b, an increase of $2.3b (1.2%) compared to the March quarter 2018.


Superannuation (pension) funds

At 30 June 2018, total unconsolidated assets of superannuation funds were $2,727.1b, an increase of $94.1b (3.6%) on the March quarter 2018 figure of $2,633.0b.

Increases were recorded in shares, $33.7b (7.8%); units in trusts, $24.4b (2.7%); assets overseas, $21.9b (5.3%); bonds, etc., $4.9b (9.3%); deposits, $3.9b (1.7%); land, buildings and equipment, $2.3b (1.6%); other financial assets, $2.2b (1.0%); net equity of pension funds in life office reserves, $2.0b (1.5%). These were partially offset by decreases in short term securities, $0.8b (1.4%); derivatives, $0.3b (1.0%); loans and placements, $0.1b (1.6%); other non-financial assets, $0.1b (3.2%).

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



Public offer (retail) unit trusts

At 30 June 2018, total unconsolidated assets of public offer (retail) unit trusts were $377.3b, a decrease of $17.6b (4.4%) on the March quarter 2018 figure of $394.8b.

Decreases were recorded in assets overseas, $22.6b (33.1%); loans and placements, $3.3b (8.9%); other non-financial assets, $0.2b (5.1%). These were partially offset by increases in other financial assets, $2.1b (41.8%); land, buildings and equipment, $2.1b (1.5%); units in trusts, $1.7b (2.1%); shares, $1.7b (4.7%); derivatives, $0.6b (28.8%); bonds, etc., $0.2b (2.3%); short term securities, $0.1b (2.5%). Deposits were flat.

Cross investment within public offer (retail) unit trusts was $37.9b, an increase of $1.7b (4.8%) compared to the March quarter 2018.

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



Friendly societies

At 30 June 2018, total unconsolidated assets of friendly societies were $7.4b, an increase of $0.2b (3.1%) on the March quarter 2018 figure of $7.2b.

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



Common funds

At 30 June 2018, total unconsolidated assets of common funds were $10.7b, an increase of $0.1b (1.3%) on the March quarter 2018 figure of $10.6b.

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



Cash management trusts

At 30 June 2018, total unconsolidated assets of cash management trusts were $36.0b which was flat compared to the March quarter 2018.

Increases were recorded in deposits, $0.2b (2.7%); short term securities, $0.2b (1.0%). These were mostly offset by decreases in bonds, etc., $0.5b (14.7%). Assets overseas, non-financial assets, derivatives, loans and placements, equities and other financial assets were flat.

Cross investment within cash management trusts was $0.5b which was flat compared to the March quarter 2018.

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



RESIDENT INVESTMENT MANAGERS

Source of funds under management

At 30 June 2018, total funds under management were $2,145.3b, an increase of $49.9b (2.4%) on the March quarter 2018 figure of $2,095.5b.

Funds under management on behalf of superannuation funds increased $35.9b (3.3%), public offer (retail) unit trusts increased $1.8b (1.3%) and life insurance corporations increased $0.9b (0.5%). Cash management trusts decreased $0.1b (0.3%).

At 30 June 2018, the value of funds under management on behalf of sources other than managed funds was $552.5b, an increase of $12.5b (2.3%) on the March quarter 2018 figure of $540.1b.

Increases were recorded in funds under management on behalf of national government, $9.0b (8.9%); other sources, $2.2b (4.5%); non-government trading corporations, $2.1b (5.8%); wholesale financial trusts, $2.0b (0.9%); government compensation schemes, $0.2b (1.0%); other investment managers, $0.1b (0.7%). These were partially offset by decreases in funds under management on behalf of state and local government, $1.7b (3.5%); general insurance, $1.4b (3.1%). Charities were flat.

The value of funds under management on behalf of overseas sources at 30 June 2018 was $123.9b, a decrease of $1.2b (0.9%) on the March quarter 2018 figure of $125.0b.

Assets of Managed Funds, at 30 June 2018

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

Life insurance corporations
164 517
76 068
240 585
Superannuation (pension) funds
1 139 428
1 587 665
2 727 093
Public offer (retail) unit trusts
138 621
238 664
377 285
Friendly societies
np
np
7 406
Common funds
np
np
10 736
Cash management trusts
19 455
16 534
35 989
Total
1 468 948
1 930 146
3 399 094

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