Australia Yearbook - 2001

Chapter 26—Financial system 901
Investment managers
A further development within the managed funds
industry is the emergence of specialist investment
managers. They are employed on a fee-for-service
basis to manage and invest in approved assets on
their clients’ behalf. They usually act for the
smaller collective investment institutions such as
public unit trusts. They are not accessible to the
small investor. Investment managers provide a
sophisticated level of service, matching assets and
liabilities. They act in the main as the managers of
pooled funds, but also manage clients’
investments on an individual portfolio basis.
A considerable proportion of the assets of
collective investment institutions, particularly the
statutory funds of life insurance corporations and
assets of pension funds, is channelled through
investment managers. At 30 June 2000, $440b
(66% of the unconsolidated assets of collective
investment institutions) were channelled through
investment managers. Table 26.25 shows the total
unconsolidated assets of each type of collective
investment institution and the amount of these
assets invested through investment managers.
Investment managers also accept money from
investors other than collective investment
institutions. At 30 June 2000, investment
managers invested $109b on behalf of
government bodies, general insurers and other
clients, including overseas clients.
26.25 ASSETS OF MANAGED FUNDS, Invested through Investment Managers—30 June 2000
Unconsolidated assets of
managed funds
Assets invested with
investment managers
Type of fund
$m
$m
Statutory funds of life insurance corporations(a) 187 528 140 381
Pension and approved deposit funds 318 438 185 452
Public unit trusts 124 036 82 033
Friendly societies 6 163 4 326
Common funds 8 219 5 519
Cash management trusts 23 804 22 112
Total 668 188 439 823
(a) Includes both superannuation and ordinary business.
Source: Managed Funds, Australia (5655.0).