5655.0 - Managed Funds, Australia, Sep 2016  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 24/11/2016   
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ANALYSIS


MANAGED FUNDS INDUSTRY

At 30 September 2016, the managed funds industry had $2,774.5b funds under management, an increase of $59.0b (2%) on the June quarter 2016 figure of $2,715.5b. Increases were recorded in consolidated assets of managed funds institutions, $45.3b (2%); funds managed by Australian investment managers on behalf of Australian entities other than managed funds institutions, $11.8b (2%) and funds managed by Australian investment managers on behalf of overseas investors, $2.2b (2%).

The following diagram shows the total value of the managed funds industry at 30 September 2016 and the relationship between the various components of the industry:

Diagram: MANAGED FUNDS INDUSTRY


MANAGED FUNDS INSTITUTIONS

Consolidated assets of managed funds institutions

At 30 September 2016, the consolidated assets of managed funds institutions were $2,182.8b, an increase of $45.3b (2%) on the June quarter 2016 figure of $2,137.5b.

Total Consolidated Assets
Graph: Total Consolidated Assets



Consolidated assets by types of asset

The asset types that increased were shares, $46.2b (8%); overseas assets, $41.2b (10%); bonds, etc., $10.5b (9%); deposits, $8.8b (3%); short term securities, $6.5b (6%); land, buildings and equipment, $3.0b (1%) and loans and placements, $0.8b (2%). These were partially offset by decreases in units in trusts, $65.2b (29%); other financial assets, $5.9b (14%); other non-financial assets, $0.4b (4%) and derivatives, $0.3b (7%).

Managed funds institutions assets
Graph: Managed funds institutions assets



UNCONSOLIDATED ASSETS

Life insurance corporations

At 30 September 2016, total unconsolidated assets of life insurance corporations were $222.2b, a decrease of $69.7b (24%) on the June quarter 2016 figure of $291.9b.

Decreases were recorded in units in trusts, $68.0b (33%); deposits, $1.7b (15%); short term securities, $0.7b (14%); shares, $0.5b (3%); other non-financial assets, $0.4b (16%); derivatives, $0.1b (9%) and assets overseas, $0.1b (1%). These were partially offset by increases in bonds, etc., $1.3b (5%) and other financial assets, $0.3b (5%). Loans and placements and land, buildings and equipment were flat.

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

Net policy liabilities was $177.6b, a decrease of $70.5b (28%) compared to the June quarter 2016.



Superannuation (pension) funds

At 30 September 2016, total unconsolidated assets of superannuation funds were $2,080.0b, an increase of $56.3b (3%) on the June quarter 2016 figure of $2,023.7b.

Increases were recorded in shares, $45.4b (8%); assets overseas, $41.6b (11%); units in trusts, $13.9b (5%); deposits, $9.3b (3%); bonds, etc., $8.9b (11%); short term securities, $8.0b (10%); land, buildings and equipment, $2.6b (2%) and loans and placements, $0.2b (2%). These were partially offset by decreases in net equity of pension funds in life office reserves, $69.0b (35%); other financial assets, $4.4b (16%) and derivatives, $0.2b (3%). Other non-financial assets were flat.

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



Public offer (retail) unit trusts

At 30 September 2016, total unconsolidated assets of public offer (retail) unit trusts were $318.3b, an increase of $1.2b (0%) on the June quarter 2016 figure of $317.1b.

Increases were recorded in units in trusts, $2.1b (3%); shares, $1.2b (4%); land, buildings and equipment, $0.4b (0%); loans and placements, $0.3b (1%); bonds, etc., $0.2b (3%) and other non-financial assets, $0.1b (1%). These were partially offset by decreases in other financial assets, $1.7b (29%); deposits, $0.8b (8%); assets overseas, $0.3b (1%); derivatives, $0.2b (7%) and short term securities, $0.1b (3%).

Cross investment within public offer (retail) unit trusts was $31.7b, an increase of $0.3b (1%) compared to the June quarter 2016.

Public Offer Unit Trusts
Graph: Public Offer Unit Trusts



Friendly societies

At 30 September 2016, total unconsolidated assets of friendly societies were $7.0b, an increase of $0.2b (4%) on the June quarter 2016 figure of $6.8b.

Friendly societies
Graph: Friendly societies



Common funds

At 30 September 2016, total unconsolidated assets of common funds were $9.5b, an increase of $0.2b (2%) on the June quarter 2016 figure of $9.3b.

Common funds
Graph: Common funds



Cash management trusts

At 30 September 2016, total unconsolidated assets of cash management trusts were $35.8b, an increase of $1.5b (4%) on the June quarter 2016 figure of $34.3b.

Increases were recorded in deposits, $1.7b (22%) and equities, $0.3b (57%). These were partially offset by decreases in short term securities, $0.5b (2%). Other financial assets, derivatives, loans and placements, non-financial assets and bonds, etc. were flat.

Cross investment within cash management trusts was $0.8b, an increase of $0.3b (57%) compared to the June quarter 2016.

Cash management trusts
Graph: Cash management trusts



RESIDENT INVESTMENT MANAGERS

Source of funds under management

At 30 September 2016, total funds under management were $1,930.9b, an increase of $125.0b (7%) on the June quarter 2016 figure of $1,805.9b.

Funds under management on behalf of superannuation funds increased $106.9b (12%), life insurance corporations increased $2.1b (1%), public offer (retail) unit trusts increased $1.2b (1%) and cash management trusts increased $0.5b (3%).

At 30 September 2016, the value of funds under management on behalf of sources other than managed funds was $501.9b, an increase of $11.8b (2%) on the June quarter 2016 figure of $490.1b.

Increases were recorded in funds under management of behalf of wholesale financial trusts, $4.2b (2%); national government, $4.1b (5%); non-government trading corporations, $1.9b (6%); other sources, $1.4b (3%); other investment managers, $0.3b (3%); government compensation schemes, $0.3b (1%); general insurance, $0.1b (0%). These were partially offset by a decrease in state and local government, $0.5b (1%). Charities were flat.

The value of funds under management on behalf of overseas sources at 30 September 2016 was $100.5b, an increase of $2.2b (2%) on the June quarter 2016 figure of $98.3b.

Assets of Managed Funds, at 30 June 2016

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

Life insurance corporations
164 903
57 303
222 206
Superannuation (pension) funds
1 004 419
1 075 540
2 079 959
Public offer (retail) unit trusts
132 657
185 657
318 314
Friendly societies
np
np
7 031
Common funds
np
np
9 498
Cash management trusts
19 960
15 845
35 805
Total
1 328 466
1 344 347
2 672 813

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