ANALYSIS


CONSOLIDATED ASSETS

By type of institution

At 31 December 2007, consolidated assets of superannuation funds were $802.4.b, up $0.5b (0.1%) on the revised September 2007 figure. Consolidated assets of public unit trusts were $277.0b, a decrease of $3.5b (1%), while the consolidated assets of life insurance offices were $220.8b, a decrease of $3.7b (2%). Cash management trusts' consolidated assets decreased by $0.8b (2%) to $45.7b; common funds' consolidated assets decreased by $0.1b (1%) to $11.6b, and the consolidated assets of friendly societies remained virtually unchanged at $4.1b.

By type of asset

The major asset movements for the quarter were equities and units in trusts, down $14.5b (2%), assets overseas, up $12.0b (4%), land and buildings, down $1.8b (1%), long term securities, down $1.7b (2%) and short term securities, up $1.2b (1%).

Cross investment

The table below presents the unconsolidated, cross-invested and consolidated assets of managed funds by type of fund as at 31 December 2007.

	Unconsolidated assets	Cross- invested assets	Consolidated assets
Type of fund	$m	$m	$m
Life insurance offices	256 118	35 353	220 764
Superannuation funds	966 997	164 588	802 409
Public unit trusts	313 906	35 371	278 536
Friendly societies	7 268	3 170	4 098
Common funds	12 297	678	11 619
Cash management trusts	45 683	-	45 683
Total	1 602 269	239 161	1 363 108
- nil or rounded to zero (including null cells)

UNCONSOLIDATED ASSETS

Life insurance offices

At 31 December 2007, the total assets of life insurance offices were $256.1b, a decrease of $5.7b (2%) on the revised September 2007 figure of $261.8b. Increases were recorded in loans and placements of $0.2b (7%), short term securities of $0.3 (2%), other financial assets of $1b (39%) and assets overseas of $0.2b (2%). Offsetting this were decreases in cash and deposits of $0.1b (1%), long term securities of $1b (4%), equities and units in trusts of $6.0b (3%) and land and buildings of $0.4b (4%) as well as a marginal decrease in other non-financial assets.

Superannuation funds

The total assets of superannuation funds held outside of life offices was $967.0b at 31 December 2007, an increase of $1.1b (0.1%) on the revised September 2007 figure of $965.9b. Major increases were recorded for: assets overseas of $10.6b (5%), and short term securities of 1.1b (3%). These gains were partially offset by decreases in: equities and units in trusts of $8.5b (2%), cash and deposits of $2.1b (2%), and long term securities of $0.4b (1%).

Public unit trusts

The total assets for public unit trusts was $312.2b at 31 December 2007, down $5.5b (2%) on the revised September 2007 figure of $317.7b. The major decreases were in equities and units in trusts, down $3.5b (3%), land and buildings, down $2.3b (3%) and other non-financial assets, down $0.7b (4%). These were offset partially by an increase of $1.2b (2%) in holdings of assets overseas.

Friendly societies

Total assets of friendly societies was $7.3b at 31 December 2007, which was a marginal increase on the September quarter 2007 figure of $7.2b. Major movements were an increase in non-financial assets, up $0.1b (25%) and a decrease in loans and placements, down $0.1b (14%).

Common funds

Total assets of common funds was $12.3b at 31 December 2007, down $0.2b (1%) on the September quarter 2007 figure. The major increase was in short term securities, up $0.2b (6%), as well as a marginal increase in loans and placements. This was offset by a decrease in cash and deposits, down $0.3b (10%) and long term securities, down $0.1b (8%); as well and marginal decreases in equities and units in trusts, other non-financial assets and assets overseas.

Cash management trusts

Total assets of cash management trusts was $45.7b at 31 December 2007, down $0.8b (2%) on the September quarter 2007 figure. The major increase was loans and placements, up $0.1b (4%). This was offset by decreases in cash and deposits, down $0.6b (7%), long term securities, down $0.2b (6%), as well as marginal decreases in short term securities and other financial assets.

INVESTMENT MANAGERS

Source of funds under management

During the December quarter 2007 there was a decrease in total funds under management by investment managers of $10.9b (1%) on the revised September quarter figure of $1269.5b, bringing the total funds under management to $1,258.7b.

The value of funds under management on behalf of superannuation funds increased by $4.4b (1%), public unit trusts decreased by $2.6b (2%), life insurance offices decreased by $2.8b (2%) and cash management trusts decreased by $1.1b (2%).

During the quarter the value of funds under management on behalf of sources other than managed funds decreased $6.4b (2%). Of this, the largest decreases were in funds under management on behalf of other investment managers, down $2.1b (6%), other trusts, down $1.3b (1%), and government, down $1.2b (5%)

The value of funds under management on behalf of overseas sources was $58.2b, a decrease of $2.2b (4%) on the revised September 2007 quarter figure.

The value of managed funds assets invested through investment managers was $876.1b at 31 December 2007, representing 64% of the consolidated assets of managed funds.