5655.0 - Managed Funds, Australia, Mar 2017  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 08/06/2017   
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ANALYSIS


MANAGED FUNDS INDUSTRY

At 31 March 2017, the managed funds industry had $2,872.3b funds under management, an increase of $29.0b (1%) on the December quarter 2016 figure of $2,843.3b. Increases were recorded in consolidated assets of managed funds institutions, $36.3b (2%); and funds managed by Australian investment managers on behalf of overseas investors, $2.0b (2%). These were partially offset by decreases in funds managed by Australian investment managers on behalf of Australian entities other than managed funds institutions, $9.3b (2%).

The following diagram shows the total value of the managed funds industry at 31 March 2017 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 March 2017, the consolidated assets of managed funds institutions were $2,276.2b, an increase of $36.3b (2%) on the December quarter 2016 figure of $2,239.9b.

Total Consolidated Assets
Graph: Total Consolidated Assets



Consolidated assets by types of asset

The asset types that increased were shares, $19.7b (3%); overseas assets, $9.6b (2%); deposits, $3.8b (1%); short term securities, $2.9b (2%); other financial assets, $2.6b (8%); units in trusts, $2.5b (2%); and land, buildings and equipment, $1.1b (0%). These were partially offset by decreases in bonds, etc., $5.5b (4%); other non-financial assets, $0.2b (2%); and derivatives, $0.2b (5%). Loans and placements were flat.

Managed funds institutions assets
Graph: Managed funds institutions assets



UNCONSOLIDATED ASSETS

Life insurance corporations

At 31 March 2017, total unconsolidated assets of life insurance corporations were $225.1b, a decrease of $2.0b (1%) on the December quarter 2016 figure of $227.1b.

Decreases were recorded in bonds, etc., $6.9b (23%); assets overseas, $2.2b (25%); short term securities, $1.6b (39%); and shares, $0.4b (2%). These were partially offset by increases in units in trusts, $6.7b (5%); other financial assets, $1.8b (32%); deposits, $0.4b (5%); loans and placements, $0.1b (4%); and other non-financial assets, $0.1b (4%). Land, buildings and equipment, and derivatives were flat.

Cross investment within life insurance corporations was $0.8b, which was flat compared to the December quarter 2016.

Net policy liabilities was $181.4b, a decrease of $0.1b (0%) compared to the December quarter 2016.


Superannuation (pension) funds

At 31 March 2017, total unconsolidated assets of superannuation funds were $2,195.6b, an increase of $52.5b (2%) on the December quarter 2016 figure of $2,143.1b.

Increases were recorded in shares, $19.7b (3%); assets overseas, $11.9b (3%); units in trusts, $6.7b (2%); short term securities, $5.1b (5%); deposits, $3.8b (1%); other financial assets, $2.5b (11%); land, buildings and equipment, $1.3b (1%); net equity of pension funds in life office reserves, $0.9b (1%); and bonds, etc., $0.8b (1%). Loans and placements, other non-financial assets and derivatives were flat.

Superannuation (Pension) funds
Graph: Superannuation (Pension) funds



Public offer (retail) unit trusts

At 31 March 2017, total unconsolidated assets of public offer (retail) unit trusts were $318.6b, an increase of $0.2b (0%) on the December quarter 2016 figure of $318.4b.

Increases were recorded in units in trusts, $0.6b (1%); shares, $0.3b (1%); short term securities, $0.2b (8%); and deposits, $0.1b (1%). These were partially offset by decreases in other financial assets, $0.5b (13%); loans and placements, $0.1b (0%); derivatives, $0.1b (6%); and land, buildings and equipment, $0.1b (0%). Bonds, etc., other non-financial assets and assets overseas were flat.

Cross investment within public offer (retail) unit trusts was $32.1b, an increase of $0.2b (1%) compared to the December quarter 2016.

Public Offer Unit Trusts
Graph: Public Offer Unit Trusts



Friendly societies

At 31 March 2017, total unconsolidated assets of friendly societies were $7.0b which was flat on the December quarter 2016 figure of $7.0b.

Friendly societies
Graph: Friendly societies



Common funds

At 31 March 2017, total unconsolidated assets of common funds were $10.2b, an increase of $0.3b (3%) on the December quarter 2016 figure of $9.9b.

Common funds
Graph: Common funds



Cash management trusts

At 31 March 2017, total unconsolidated assets of cash management trusts were $34.1b, a decrease of $1.1b (3%) on the December quarter 2016 figure of $35.2b.

Decreases were recorded in short term securities, $0.8b (3%); and deposits, $0.5b (6%). These were partially offset by increases in bonds, etc., $0.1b (8%); equities, $0.1b (16%); and other financial assets, $0.1b (135%). Derivatives, loans and placements and non-financial assets were flat.

Cross investment within cash management trusts was $0.6b, an increase of $0.1b (16%) compared to the December quarter 2016.

Cash management trusts
Graph: Cash management trusts



RESIDENT INVESTMENT MANAGERS

Source of funds under management

At 31 March 2017, total funds under management were $2,004.0b, an increase of $25.9b (1%) on the December quarter 2016 figure of $1,978.1b.

Funds under management on behalf of superannuation funds increased $32.1b (3%), public offer (retail) unit trusts increased $1.0b (1%) and cash management trusts increased $0.2b (1%). Life insurance corporations decreased $0.1b (0%).

At 31 March 2017, the value of funds under management on behalf of sources other than managed funds was $502.5b, a decrease of $9.3b (2%) on the December quarter 2016 figure of $511.9b.

Decreases were recorded in other sources, $14.3b (26%); state and local government, $0.7b (1%); general insurance, $0.2b (0%); and other investment managers, $0.1b (1%). These were partially offset by increases in funds under management on behalf of national government, $2.5b (3%); wholesale financial trusts, $2.3b (1%); government compensation schemes, $0.6b (3%); and non-government trading corporations, $0.6b (2%). Charities were flat.

The value of funds under management on behalf of overseas sources at 31 March 2017 was $104.3b, an increase of $2.0b (2%) on the December quarter 2016 figure of $102.3b.

Assets of Managed Funds, at 31 March 2017

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

Life insurance corporations
163 114
61 983
225 097
Superannuation (pension) funds
1 073 402
1 122 222
2 195 624
Public offer (retail) unit trusts
133 875
184 759
318 634
Friendly societies
np
np
6 956
Common funds
np
np
10 174
Cash management trusts
20 067
14 018
34 085
Total
1 397 148
1 393 422
2 790 570

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