Australian managed funds set to pass record milestone

Australia's managed funds industry is poised to break through the $500 billion for the first time.

Australia's managed funds industry is poised to break through the $500 billion for the first time.

According to the Australian Bureau of Statistics, the value of con-solidated assets of managed funds in Australia were worth $493.7 bil-lion at the end of March.

This represents a 13 per cent jump over the previous 12 months and 3 per cent rise on the December quarter's figure of $478.5 billion.

Superannuation funds showed the largest gains - a surge of $5.1 bil-lion or 2 per cent - in the March quarter. Public unit trusts rose $4.9 billion while life insurance offices were up $4.3 billion.

The value of managed funds' assets invested through funds managers was $374.8 billion at the end of March, making up 76 per cent of all the consolidated assets of fund managers.

In line with the All Ordinaries Index, equities and units in trusts held by fund managers rose by 5 per cent to $145.8 billion. Assets overseas increased by 3 per cent to $86.5 billion, broadly in line with the appreciation of the Australian dollar, the ABS says.

Continuing the quarterly decline in assets holdings evident since September 1997, the assets of friendly societies decreased by $0.1 billion - or 1 per cent.

The total assets of cash management trusts rose by $0.7 billion - or 3 per cent - to $21.4 billion.

Managed funds - a snaphot

March 1999($billion) March 1998($billion)

Superannuation funds 212.5 192.5

Life insurance funds 159.9 143.4

Other managed funds 121.3 101.2

Total 493.7 437.1

Source: ABS