5655.0 - Managed Funds, Australia, Dec 2017  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 08/03/2018   
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ANALYSIS


MANAGED FUNDS INDUSTRY

At 31 December 2017, the managed funds industry had $3,389.6b funds under management, an increase of $109.6b (3%) on the September quarter 2017 figure of $3,279.9b. Increases were recorded in consolidated assets of managed funds institutions, $82.4b (3%); funds managed by Australian investment managers on behalf of Australian entities other than managed funds institutions, $24.2b (5%); and funds managed by Australian investment managers on behalf of overseas investors, $3.3b (3%).

The following diagram shows the total value of the managed funds industry at 31 December 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 December 2017, the consolidated assets of managed funds institutions were $2,745.6b, an increase of $82.4b (3%) on the September quarter 2017 figure of $2,663.2b.

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, $34.6b (7%); units in trusts, $29.7b (4%); overseas assets, $17.3b (4%); land, buildings and equipment, $5.8b (2%); bonds, etc., $5.5b (7%); and deposits, $3.4b (1%). These were partially offset by decreases in short term securities, $6.4b (7%); other financial assets, $4.7b (2%); derivatives, $1.8b (6%); loans and placements, $0.7b (2%); and other non-financial assets, $0.4b (3%).

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



UNCONSOLIDATED ASSETS

Life insurance corporations

At 31 December 2017, total unconsolidated assets of life insurance corporations were $242.1b, an increase of $3.8b (2%) on the September quarter 2017 figure of $238.3b.

Increases were recorded in shares, $3.0b (14%); units in trusts, $2.0b (1%); assets overseas, $1.1b (8%); short term securities, $0.3b (12%); and derivatives, $0.1b (16%). These were partially offset by decreases in other financial assets, $1.8b (22%); loans and placements, $0.8b (16%); and other non-financial assets, $0.1b (1%). Land, buildings and equipment, bonds, etc., and deposits were flat.

Net policy liabilities were $187.0b, an increase of $2.9b (2%) compared to the September quarter 2017.


Superannuation (pension) funds

At 31 December 2017, total unconsolidated assets of superannuation funds were $2,657.6b, an increase of $81.8b (3%) on the September quarter 2017 figure of $2,575.8b.

Increases were recorded in units in trusts, $38.7b (4%); shares, $29.4b (7%); assets overseas, $14.9b (4%); bonds, etc., $4.5b (9%); deposits, $3.5b (1%); and net equity of pension funds in life office reserves, $2.0b (1%). These were partially offset by decreases in short term securities, $5.2b (8%); other financial assets, $3.5b (2%); derivatives, $2.1b (7%); loans and placements, $0.2b (3%); and other non-financial assets, $0.2b (8%). Land, buildings and equipment 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 2017, total unconsolidated assets of public offer (retail) unit trusts were $356.0b, an increase of $13.1b (4%) on the September quarter 2017 figure of $342.9b.

Increases were recorded in land, buildings and equipment, $5.8b (4%); shares, $2.4b (7%); units in trusts, $2.1b (3%); assets overseas, $1.2b (4%); bonds, etc., $0.8b (10%); loans and placements, $0.6b (2%); other financial assets, $0.5b (12%); derivatives, $0.2b (9%); and short term securities, $0.1b (3%). These were partially offset by decreases in deposits, $0.4b (4%); and other non-financial assets, $0.1b (3%).

Cross investment within public offer (retail) unit trusts was $33.2b, an increase of $0.4b (1%) compared to the September quarter 2017.

Public offer (retail) unit trusts
Graph: This graph shows the percentage growth of public offer unit trusts' assets.



Friendly societies

At 31 December 2017, total unconsolidated assets of friendly societies were $7.3b, an increase of $0.1b (2%) on the September quarter 2017 figure of $7.1b.

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



Common funds

At 31 December 2017, total unconsolidated assets of common funds were $10.8b, an increase of $0.3b (3%) on the September quarter 2017 figure of $10.5b.

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



Cash management trusts

At 31 December 2017, total unconsolidated assets of cash management trusts were $35.7b, a decrease of $1.3b (4%) on the September quarter 2017 figure of $37.0b.

Decreases were recorded in short term securities, $1.6b (7%); and equities, $0.2b (19%). These were partially offset by increases in deposits, $0.2b (3%); and bonds, etc., $0.2b (6%). Other financial assets, derivatives, loans and placements and non-financial assets were flat.

Cross investment within cash management trusts was $0.7b, a decrease of $0.2b (21%) compared to the September quarter 2017.

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 2017, total funds under management were $2,080.5b, an increase of $66.3b (3%) on the September quarter 2017 figure of $2,014.2b.

Funds under management on behalf of superannuation funds increased $36.1b (3%), public offer (retail) unit trusts increased $2.8b (2%) and life insurance corporations increased $0.5b (0%). Cash management trusts decreased $0.6b (3%).

At 31 December 2017, the value of funds under management on behalf of sources other than managed funds was $535.7b, an increase of $24.3b (5%) on the September quarter 2017 figure of $511.4b.

Increases were recorded in funds under management of behalf of national government, $10.7b (13%); wholesale financial trusts, $5.8b (3%); non-government trading corporations, $3.1b (9%); government compensation schemes, $2.5b (11%); other sources, $1.4b (3%); state and local government, $0.7b (1%); and other investment managers, $0.4b (3%). These were partially offset by a decrease in general insurance, $0.4b (1%). Charities were flat.

The value of funds under management on behalf of overseas sources at 31 December 2017 was $120.2b, an increase of $3.3b (3%) on the September quarter 2017 figure of $116.9b.

Assets of Managed Funds, at 31 December 2017

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

Life insurance corporations
163 215
78 855
242 070
Superannuation (pension) funds
1 097 483
1 560 139
2 657 622
Public offer (retail) unit trusts
137 999
218 034
356 033
Friendly societies
np
np
7 263
Common funds
np
np
10 776
Cash management trusts
19 187
16 508
35 695
Total
1 424 655
1 884 804
3 309 459

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