ANALYSIS


CONSOLIDATED ASSETS

By type of institution

At 30 September 2007, consolidated assets of superannuation funds were $810.0b, up $20.2b (3%) on the revised June 2007 figure. Consolidated assets of public unit trusts were $282.2b, an increase of $2.5b (1%). Consolidated assets of life insurance offices increased by $1.7b (1%), common funds increased by $0.3b (3%), cash management trusts decreased by $0.2b (1%), and the assets of friendly societies decreased by $0.1b (2%) on the June quarter figures.

By type of asset

The major asset movements for the quarter were equities and units in trusts, up $22.4b (4%), assets overseas, up $5.2b (2%), land and buildings, up $4.0b (3%), short term securities, up $1.1b (1%) and other assets, down $5.6b (12%).

Cross investment

The table below presents the unconsolidated, cross-invested and consolidated assets of managed funds by type of fund as at 30 September 2007.

	Unconsolidated assets	Cross- invested assets	Consolidated assets
Type of fund	$m	$m	$m
Life insurance offices	261 701	37 395	224 306
Superannuation funds	974 372	164 372	810 000
Public unit trusts	317 722	35 541	282 181
Friendly societies	7 247	3 101	4 146
Common funds	12 454	692	11 762
Cash management trusts	46 506	-	46 506
Total	1 620 001	241 100	1 378 901
- nil or rounded to zero (including null cells)

UNCONSOLIDATED ASSETS

Life insurance offices

At 30 September 2007, the total assets of life insurance offices were $261.7b, a decrease of $1.5b (1%) on the revised June 2007 figure of $263.2b. Increases were recorded in equities and units in trusts of $2.8b (1%), short term securities of $0.6b (6%), loans and placements of $0.1b (2%) and a marginal increase in land and buildings. Offsetting this were decreases in long term securities of $2.0b (8%), cash and deposits of $1.7b (21%), assets overseas of $0.8b (6%), other financial assets of $0.5b (16%) 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 $974.4b at 30 September 2007, an increase of $28.0b (3%) on the revised June 2007 figure of $946.4b. Major increases were recorded for: equities and units in trusts of $20.1b (4%), assets overseas of $6.8b (3%), long term securities of $2.6b (5%), land and buildings of $2.4b (5%), cash and deposits of $0.9b (1%) and loans and placements of $0.1b (2%). These were partially offset by decreases in other financial assets of $4.7b (23%) and short term securities of $0.2b (1%).

Public unit trusts

The total assets for public unit trusts was $317.7b at 30 September 2007, up $3.5b (1%) on the revised June 2007 figure of $314.2b. The major increases were equities and units in trusts, up $3.7b (3%), land and buildings, up $1.6b (2%), other non-financial assets, up $1.2b (9%), and short term securities, up $0.6b (9%). These were partially offset by decreases in other financial assets of $1.5b (19%), loans and placements of $1.0b (6%), assets overseas of $0.9b (2%) and cash and deposits of $0.2b (3%).

Friendly societies

Total assets of friendly societies was $7.2b at 30 September 2007, up $0.1b (1%) on the June quarter 2007 figure. Major movements were an increase in short term securities, up $0.2b (22%) and a decrease in other financial assets, down $0.1b (12%).

Common funds

Total assets of common funds was $12.5b at 30 September 2007, up $0.4b (3%) on the June quarter 2007 figure. The major increase was in short term securities, up $0.4b (13%), followed by marginal increases in: equities and units in trusts, assets overseas, loans and placements and other financial assets. These were partially offset by a decrease in cash and deposits, down $0.1b (4%) and marginal decreases in long term securities and other non-financial assets.

Cash management trusts

Total assets of cash management trusts was $46.5b at 30 September 2007, down $0.2b (1%) on the June quarter 2007 figure. The major increases were: cash and deposits, up $1.1b (15%), loans and placements, up $0.1b (6%) and other financial assets, up $0.1b (44%). These were offset by decreases in long term securities, down $1.1b (31%) and short term securities, down $0.5b (1%).

INVESTMENT MANAGERS

Source of funds under management

During the September quarter 2007 there was an increase in total funds under management by investment managers of $30.6b (2%) on the revised June quarter figure, bringing the total funds under management to $1,258.2b.

The value of funds under management on behalf of superannuation funds increased by $18.8b (4%), public unit trusts increased by $2.1b (2%), life insurance offices decreased by $1.3b (1%) and cash management trusts increased by $0.6b (2%).

During the quarter the value of funds under management on behalf of sources other than managed funds increased $9.8b (3%). Of this, the largest increases were in funds under management on behalf of other trusts, up $5.7b (3%) and other sources, up $3.1b (6%). These were partially offset by a decrease in funds sourced from Government, down $0.5b (2%).

The value of funds under management on behalf of overseas sources was $60.4b, an increase of $0.7b (1%) on the revised June 2007 quarter figure.

The value of managed funds assets invested through investment managers was $874.5b at 30 September 2007, representing 63% of the consolidated assets of managed funds.