ANALYSIS


CONSOLIDATED ASSETS

By type of institution

At 31 December 2008, consolidated assets of superannuation funds were $717.6b, down $61.3b (8%) on the revised September 2008 figure. Consolidated assets of public unit trusts were $255.4b, a decrease of $13.3b (5%); the consolidated assets of life insurance offices were $164.9b, a decrease of $15.1b (8%); the consolidated assets of cash management trusts were $44.1b, a decrease of $1.1b (2%); and the consolidated assets of common funds were $11.3b, a decrease of $0.3b (2%). Consolidated assets of friendly societies remained virtually the same at $4.0b.

By type of asset

The major asset movements for the quarter were equities and units in trusts, down by $67.2b (14%); assets overseas, down $29.3b (12%); cash and deposits, up $15.1b (10%); short term securities, down $10.2b (10%); long term securities, down $3.5b (4%); and other assets up by $4.7b (9%). Land and buildings and loans and placements remained virtually the same at $157.3b and $42.0b respectively.


Cross investment

The table below presents the unconsolidated, cross-invested and consolidated assets of managed funds by type of fund as at 31 December 2008.

	Unconsolidated assets	Cross- invested assets	Consolidated assets
Type of fund	$m	$m	$m
Life insurance offices	207 599	42 737	164 862
Superannuation funds	868 416	150 848	717 568
Public unit trusts	283 013	27 593	255 420
Friendly societies	6 569	2 551	4 018
Common funds	11 804	540	11 264
Cash management trusts	44 053	-	44 053
Total	1 421 454	224 268	1 197 185
- nil or rounded to zero (including null cells)

UNCONSOLIDATED ASSETS

Life insurance offices

At 31 December 2008, the total unconsolidated assets of life insurance offices were $207.6b, a decrease of $19.6b (9%) on the revised September quarter 2008 figure of $227.2b. The major decreases were recorded in equities and units in trusts of $22.3b (14%), and assets overseas of $1.4b (13%). Offsetting these were increases in cash and deposits of $2.8b (40%), and other non-financial assets of $2.1b (65%).

Superannuation funds

The total unconsolidated assets of superannuation funds held outside of life offices was $868.4b at 31 December 2008, a decrease of $74.6b (8%) on the revised September 2008 figure of $943.0b. Major decreases were recorded for: equities and units in trusts, down $53.3b (13%); assets overseas, down $26.4b (14%); short term securities, down $4.3b (10%) and long term securities, down $2.9b (6%). These decreases were partially offset by increases in cash and deposits, up $9.2b (6%) and other financial assets, up $2.3b (8%).

Public unit trusts

The total unconsolidated assets for public unit trusts was $283.0b at 31 December 2008, down $16.3b (5%) on the revised September 2008 figure of $299.3b. The major decreases were in equities and units in trusts, down $12.6b (13%), assets overseas, down $1.5b (3%), and land and buildings, down $1.4b (2%). These falls were partially offset by an increase of $0.5b (7%) in other financial assets.

Friendly societies

At 31 December 2008, total unconsolidated assets of friendly societies were $6.6b, down $0.3b (4%) on the September quarter 2008 figure. The major decreases were in equities and units in trusts, down $0.4b (12%), and long term securities, down $0.1b (17%). These falls were offset by an increase in short term securities, up $0.2b (20%).

Common funds

At 31 December 2008, the total unconsolidated assets of common funds was $11.8b, down $0.3b (3%) on the September quarter 2008 figure of $12.1b. The major decreases were in short term securities, down $0.3b (9%), and equities and units in trusts, down $0.1b (7%).

Cash management trusts

At 31 December 2008, the total unconsolidated assets of cash management trusts was $44.1b, down $1.1b (2%) on the September quarter 2008 figure of $45.2b. The major decrease was in short term securities, down $5.3b (14%). Cash and deposits increased by $4.1b (105%).

INVESTMENT MANAGERS

Source of funds under management

During the December quarter 2008 there was a decrease in total funds under management by investment managers of $128.7b (11%) on the revised September quarter 2008 figure of $1,134.7b, bringing the total funds under management to $1,006.0b.

The value of funds under management on behalf of superannuation funds decreased by $48.7b (11%), public unit trusts decreased by $13.8b (12%), and life insurance offices decreased by $8.4b (6%).

During the quarter the value of funds under management on behalf of sources other than managed funds was $281.6b, a decrease of $48.6b (15%) on the revised September quarter 2008 figure of $330.2b. The largest decreases were in funds under management on behalf of other trusts, down $19.2b (15%); government, down $15.9b (16%); other investment managers, down $8.5b (26%), and other sources, down $4.3b (11%).

The value of funds under management on behalf of overseas sources was $41.5b, a decrease of $7.4b (15%) on the revised September quarter 2008 figure, of $48.9b.