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Australian Asset Flows

March Quarter 2015

Record Quarter Lifts Total Assets Under Management to AUD1.37 Trillion

Peter Gee

Research Products Manager

Date of Publication – March 2015

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The Australian managed funds industry started 2015

with a booming first quarter, gaining an additional

AUD90.7 billion. The result was the 14th consecutive

quarter of growth since March 2011, representing an

accumulated value of AUD490.5 billion. Total assets

under management now sit at AUD1.37 trillion.

In general, solid market conditions prevailed over the

quarter. Australian equities returned a strong 10.3% as

measured by the S&P/ASX 200 index. A-REITs were in

line with the broader market rising 9.4%, and

international property advanced 6.9%, lagging its

domestic counterpart. International equities also rose

over the period to return a respectable 9.6%. In this

environment, almost 60% of managers in our TAUM

survey expanded their asset bases by more than 5%

over the quarter.

Total assets under management grew by AUD90.7

billion over the March quarter. Equities stood tall over

the period and accounted for over AUD54.3 billion in the

growth of assets under management. The split between

domestic and international equities was AUD28.4 billion

and AUD25.8 billion respectively, reversing the recent

trend of the international sector dominating equities

growth. Strong international market returns over the

past year and the need for a more diversified equity

exposure attributed to the annual growth of

international equity assets reaching AUD68.8 billion

compared to AUD38.9 billion for Australian equities.

State Street Global Advisors maintained its position as

the largest manager of discrete mandate assets followed

by Commonwealth/Colonial Group. Macquarie Bank

Group finished the quarter with AUD46.7 billion in

discrete assets, comfortably placing the firm in third

position ahead of Challenger.

Australian managed funds on aggregate had net

outflows of more than AUD1.5 billion over the March

quarter, which was a significant decrease from the

previous quarter’s inflows of AUD6.5 billion. STC Growth

contributed the bulk of outflows over the quarter, with

more than AUD7.0 billion flowing out of the option and

into a new option called DC Growth. Investment trusts

had the largest net inflows over the quarter of more than

AUD3.9 billion, followed by pension and annuities with

inflows of over AUD625.6 million. Over the year to March,

pensions and annuities recorded the largest inflows,

mustering more than AUD5.2 billion. Investment trusts

came in a distant second with AUD396.8 million.

There has been a clear shift towards index funds over the

last year and the trend continued over the first quarter of

2015 as passive funds dominated active. The net inflow to

index funds was more than AUD2.3 billion compared with

outflows of almost AUD3.9 billion for actively managed

funds. Vanguard international shares Index was the main

beneficiary of inflows.

The Australian exchange-traded product (ETP) industry

continued to grow rapidly in the first quarter of 2015, with

assets up 18.27% to AUD17.62 billion. Global equities

dominated, but cash, US dollar, dividend harvesting,

inverse equity, crude oil and listed property ETPs also did

well. The common theme among that mixed bag is that

investors appear to be focused on income, while the

popularity of inverse, cash and currency ETPs suggests

caution about the market outlook. The number of ETPs at

the time of writing totaled 117, up from 102 at the end of

2014.

Net flows to platforms over the March quarter reached

AUD5.6 billion, a solid increase of AUD1.2 billion from the

previous quarter. Platforms have now recorded their

eighth consecutive quarter of total net inflows exceeding

AUD4.0 billion. Macquarie Group topped the platform

leader board over the March quarter, collecting an

additional AUD2.5 billion, followed by BT Financial Group

(AUD1.5 billion) and Commonwealth/Colonial Group

(AUD508.6 million). K

Discrete mandate assets grew by more than AUD55.1

billion in the March quarter, representing an increase of

more than 87.2% from the gain of AUD29.4 billion

experienced in the previous quarter. Assets now sit at

AUD787.6 billion and account for more than 57.1% of

total assets under management.

Overview 1

Methodology 2

Total Assets Under Management (TAUM) 3

Funds 6

Funds – Exchange-Traded (ETFs) 9

Platform Administration 10

Appendices 12

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2 © 2015 Morningstar, Inc. All rights reserved. ?

Methodology

Total Assets Under Management (TAUM)‘Total Assets Under Management’ provides a snapshot of the total asset base for the managed fund industry and the assets under management for the underlying investment houses. It accounts for in-house managed money, including retail and wholesale funds, listed funds, and discrete mandates, but not outsourced money. Both market movement and investor flows can affect TAUM.

Funds ‘Funds’ captures the scale and flow of individual managed funds, identifying inflows and outflows. We assess fund and ETF flows independent of each other, while LIC data can be found in the appendix. The database contains over 16,000 active and finalised managed funds, also aggregated on parent and broad asset class levels. (The

inclusion of master trust platform funds in conjunction with the underlying funds may result in some double counting, however, Morningstar Direct does enable users to view the data exclusive of platform funds.) Estimated net flows have been used for some managers who have elected not to provide actual flows.

Platform Administration ‘Platform Administration’ captures the scale and flow of the assets under administration of platform providers, primarily through master trusts and wraps. It incorporates all money invested through platforms, including direct shares and term deposits.

Morningstar captures the scale and flow of the Australian managed funds industry from three different market perspectives:

Morningstar Australian Asset Flows – June Quarter 2013

2 © 2013 Morningstar, Inc. All rights reserved. ?

Methodology

Total Assets Under Management (TAUM)‘Total Assets Under Management’ provides a snapshotof the total asset base for the managed fund industry andthe assets under management for the underlyinginvestment houses. It accounts for in-house managedmoney, including retail and wholesale funds, listed funds,and discrete mandates, but not outsourced money. Bothmarket movement and investor flows can affect TAUM.

Funds‘Funds’ captures the scale and flow of individual managedfunds, identifying inflows and outflows. We assessfund and ETF flows independent of each other, while LICdata can be found in the appendix. The database containsover 16,000 active and finalised managed funds, alsoaggregated on parent and broad asset class levels. (The

inclusion of master trust platform funds in conjunctionwith the underlying funds may result in some doublecounting, however, Morningstar Direct does enable usersto view the data exclusive of platform funds.) Estimatednet flows have been used for some managers who haveelected not to provide actual flows.

Platform Administration‘Platform Administration’ captures the scale and flow ofthe assets under administration of platform providers,primarily through master trusts and wraps. It incorporatesall money invested through platforms, including directshares and term deposits.

Morningstar captures the scale and fl ow of the Australian managed funds industry from three different market perspectives:

✔ Covered by Morningstar

✔

✔

✔

✔

1 2 3

✔

✔

Unlisted Listed

Total Assets Under Management (TAUM)

Measures the total assets under management at the parent level.

Changes include market movement.

Funds

Captures fund inflows and outflows at the individual product level.

Changes do not include market movement

(applicable to cash flows).

Platform Administration

Tracks managed fund transactions through various distribution channels.

Changes do not include market movement

(applicable to cash flows).

✔

Australian Fund Managers

Overseas Fund Managers

Platform Direct

Industry

Government

Corporate

Investment Trust

Superannuation

Pension

Investment Bond

ETF

LIC

Master Trust

✔

Direct InvestmentRetail

✔ Retail

Wholesale✔

✔

✔ Wrap

✔ Retail Funds

✔ Wholesale Funds

✔ Discrete Mandates

✔ Listed Investments

Morningstar Australian Asset Flows – March Quarter 2015

? 3 © 2015 Morningstar, Inc. All rights reserved.


Total Assets Under Management (TAUM)

Assets Under Management Reach AUD1.37 Trillion

Total assets under management grew by an impressive AUD90.7 billion over the March quarter, the largest increase recorded. The result was the 14th consecutive quarter of growth since March 2011, representing an accumulated value of AUD490.5 billion. Total assets under management now sit at AUD1.37 trillion.

In general, solid market conditions prevailed over the quarter. Australian equities returned a strong 10.3% as measured by the S&P/ASX 200 index. A-REITs were in line with the broader market rising 9.4%, and international property advanced 6.9%, lagging its domestic counterpart. International equities also rose over the period to return a respectable 9.6%. In this environment, almost 60% of managers in our TAUM survey expanded their asset bases by more than 5% over the quarter.

State Street Global Advisors recorded the largest dollar increase over the quarter with more than AUD17.9 billion. The bulk of the increase was sourced from discrete mandates totaling more than AUD17.1 billion.

Vanguard Investments Australia Ltd came in second with more than AUD6.3 billion. The main contributors to growth were from wholesale investors (AUD4.1 billion) and discrete mandates (AUD1.7 billion). AMP Group rounded out the top three with over AUD5.7 billion, retail investors (AUD3.9 billion), discrete mandates (AUD2.2 billion) and wholesale (AUD1.4 billion) supplied most of the assets.

The largest five managers by assets are State Street Global Advisors (Aus) (AUD170.2 billion), followed by Commonwealth/Colonial Group with AUD122.5 billion, AMP Group (AUD99.6 billion), Vanguard Investments Australia (AUD78.8 billion) and BlackRock Investment Management (AUS) Ltd with AUD63.6 billion.

Over the year, discrete mandates contributed most to growth in TAUM with more than AUD55.1 billion, followed by retail AUD28.0 billion, wholesale AUD24.7 billion and listed investments at just over AUD3.5 billion.

Chart 1 – Total Assets Under Management ($bn) Chart 2 – Top & Bottom TAUM Change ($bn) March Quarter 2015

Chart 3 – Largest 10 Managers by TAUM ($bn)

March Quarter 2015 Chart 4 – TAUM Change for the Largest 10 Managers ($bn)

March Quarter 2015

* % TAUM Change



Total Assets Under Management (TAUM) – Asset Class

Equity Assets Skyrocket Over March Quarter

Total assets under management grew by AUD90.7 billion

over the March quarter. Equities stood tall over the

period and accounted for over AUD54.3 billion in the

growth of assets under management. The split between

domestic and international equities was AUD28.4 billion

and AUD25.8 billion respectively, reversing the recent

trend of the international sector dominating equities

growth. Strong international market returns over the past

year and the need for a more diversified equity exposure

attributed to the annual growth of international equity

assets reaching AUD68.8 billion compared to AUD38.9

billion for Australian equities.

In aggregate dollar terms, investment managers held

AUD346.5 billion in Australian equity assets at the end of

March. This was followed by international equities (AUD333.9

billion), Australian fixed interest (AUD174.8 billion), cash

(AUD160.7 billion) and international fixed interest (AUD93.8

billion).

The average mix of assets held by managers at the end of

March was Australian equities (25.1%), international equities

(24.2%), fixed interest (19.8%), cash (11.7%), property and

infrastructure (11.2%), and other (8.0%).

Chart 5 – Asset Allocation

.

.

Chart 6 – TAUM Change by Asset Class ($bn)

March Quarter 2015

Chart 7–11 – Top and Bottom TAUM Change by Asset Class ($bn)

March Quarter 2015

Australian Equity International Equity

Property & Infrastructure Fixed Interest Cash * % TAUM Change



Total Assets Under Management (TAUM) – Discrete Mandates

Discrete Mandate Assets Up AUD55.1 Billion

Discrete mandate assets grew by more than AUD55.1

billion in the March quarter, representing an increase of

more than 87.2% from the gain of AUD29.4 billion

experienced in the previous quarter. Assets now sit at

AUD787.6 billion and account for more than 57.1% of total

assets under management.

State Street Global Advisors (Aus) recorded the largest

absolute change over the quarter, with a jump of

AUD17.1 billion. The group’s international equities assets

swelled by more than AUD5.8 billion. Assets in

Commonwealth/Colonial Group increased by more than

AUD3.0 billion over the same period. The main

contributors to growth were cash, benefitting from the

AUD1.7 billion net flows from the Future Fund. Schroder

Investment Management Australia Limited had the third

largest increase in discrete assets with AUD2.6 billion.

The firm’s discrete assets now sit at over AUD32.5 billion

as at the end of March. Equities contributed almost 70%

of the growth in assets with Australian equities adding

AUD932.4 million and international equities AUD903.3

million.

Some notable mandate movements over the quarter

include VicSuper awarded a AUD100 million mandate to

global fixed interest manager Payden & Rygel and The

Meat Industry Employees Superannuation Fund handed

AllianceBernstein an equities mandate.

State Street Global Advisors maintained its position as the

largest manager of discrete mandate assets with more

than AUD160.5 billion as at the end of March 2015.

Commonwealth/Colonial Group experienced growth of

6.0% for the quarter and managed to secure second place

with AUD53.9 billion. Macquarie Bank Group finished the

quarter with AUD46.7 billion in discrete assets, comfortably

placing the firm in third position ahead of Challenger.

Looking at aggregate results, Australian equities grew by an

impressive AUD17.8 billion, and international equities gained

AUD14.9 billion over the quarter. Sound growth was also

achieved among fixed interest assets. International fixed

interest and Australian fixed increased AUD3.5 billion and

AUD3.0 billion respectively.

Chart 12 – Discrete Mandate TAUM ($bn) Chart 13 – Top & Bottom TAUM Quarterly Change ($bn)

March Quarter 2015

* % TAUM Change



Funds

Passive Funds Dominate

Australian managed funds on aggregate had net

outflows of more than AUD1.5 billion over the March

quarter, which was a significant decrease from the

previous quarter’s inflows of AUD6.5 billion. STC Growth

contributed the bulk of outflows over the quarter, with

more than AUD7.0 billion flowing out of the option and

into a new option called DC Growth. Investment trusts

had the largest net inflows over the quarter of more than

AUD3.9 billion, followed by pension and annuities with

inflows of over AUD625.6 million. Over the year to

March, pensions and annuities recorded the largest

inflows, mustering more than AUD5.2 billion. Investment

trusts came in a distant second with AUD396.8 million.

The top asset-gathering managers over the quarter

included Vanguard Investments Australia Ltd with more

than AUD1.2 billion. Heavyweight industry fund

AustralianSuper scored second place, collecting over

AUD1.1 billion. Commonwealth/Colonial Group followed

with AUD666.5 million and AMP Group capped off the top

four with almost AUD623.5 million.

There has been a clear shift towards index funds over the

last year and the trend continued over the first quarter of

2015 as passive funds dominated active. The net inflow to

index funds was more than AUD2.3 billion compared with

outflows of almost AUD3.9 billion for actively managed

funds. Vanguard international shares Index was the main

beneficiary of inflows.

Defensive assets were the standout over the March

quarter with inflows of more than AUD2.7 billion, while

growth funds bled over AUD1.3 billion. Alternatives

secured flows in excess of AUD457.2 million and multi-

sector funds registered large outflows of more than

AUD3.8 billion.

Commonwealth/Colonial Group is sitting in top position as

the largest holder of total funds under management. AMP

Group recorded a quarterly increase of AUD5.7 billion and

came in second place in size, followed by Australian Super,

National/MLC Group and BT Financial Group rounding out

the top five.

Chart 14 – Funds Quarterly Flow ($bn)1 Chart 15 – Top and Bottom Managers by Flow ($bn)1

March Quarter 2015

Chart 16 – Largest 10 Managers by Size ($bn)1

March Quarter 2015

1 Aggregated from fund level data

Chart 17 – Flow for Largest 10 Managers ($bn)1

March Quarter 2015

*Flow/Beginning Size %



Funds – Flows

Fixed Interest Leads Quarterly Flows

Traditional domestic and global bonds lead the single sector flows over the March quarter. Australian bonds recorded net inflows of AUD678.8 million followed by global bonds with just over AUD541.4 million. Investors also poured more than AUD477.3 million into multi-strategy income. Fixed interest funds featured prominently in top flows. Kapstream Premier Absolute Return Income Fund gained more than AUD226.5 million and ranked number two on our list. The fund aims to provide a steady stream of income with capital stability across economic cycles. Strong inflow over the past year has helped the fund to reach more than AUD1.6 billion since inception around mid-2007.

Investors have not shied away from PIMCO Diversified Fixed Interest. The strategy invests in a mix of local and offshore government, semi-government and corporate bonds. The focus is on investment grade securities in developed markets but can also include high-yield bonds, emerging markets and inflation linked bonds. The fund secured over AUD124.5 million in flows during the March quarter and AUD295.5 million over the past twelve months. Passive management was in favour over the quarter, a fact supported by the number of index funds appearing in our table of top ten largest flows.

BlackRock Global Bond Index Fund acquired inflows of over AUD167.1 million and Vanguard International Shares Index collected AUD121.4 million. Vanguard is one of the world’s leading index managers and the International Shares Index fund is popular among investors seeking inexpensive, broad and uncomplicated exposure to global equities.

There was an exodus out of Australian and international equities over the quarter, however, Fidelity and Magellan managed to buck the trend and appear in our top ten list. Australian equities in aggregate had outflows over the March quarter of more than AUD501.9 million. About 73% of funds had negative flows. Fidelity Australian Equities collected more than AUD140.8 million in flows, the fund has displayed consistently strong performance resulting in an enviable long-term record of outperforming the market and peer group over 10 years. Magellan Global has proven a strong outperformer over a variety of market conditions and has been a magnet for assets in recent times. The fund has again made it into our top ten largest inflows list and is the only active international share manager to appear in the table. Over the March quarter, the fund gathered over AUD128.1 million.

Table 2 – Top 10 Funds by Quarterly Flow to March 2015 ($m)*

Fund Name Quarterly Flow Annual Flow Total Net Assets Morningstar Category

Vanguard Intl Shares Index Hgd NZD 509 517 1,146 Miscellaneous

Kapstream Premier Absolute Return Inc 227 -138 1,698 Multi-Strategy Income

BlackRock Global Bond Index Fund 167 217 793 Bonds - Global

UBS Dynamic Alpha Strategies Fund A 167 528 1,070 Alternative Strategies

Fidelity Australian Equities 141 599 4,532 Equity Australia Large Blend

Kapstream Wholesale Absolute Ret Inc Fd 139 856 1,674 Multi-Strategy Income

Magellan Global 128 786 7,507 Equity World Large Blend

Vanguard Balanced Index Fund 127 349 2,896 Multisector Balanced

PIMCO EQT WS Diversified Fixed Interest 125 296 1,612 Bonds - Global / Australia

Vanguard International Shrs Idx Hdg AUD 121 -18 3,585 Equity World - Currency Hedged

Table 3 – Bottom 10 Funds by Quarterly Flow to March 2015 ($m)*

Fund Name Quarterly Flow Annual Flow Total Net Assets Morningstar Category

Candriam Sustainable Global Equity -636 -581 39 Equity World Large Blend

MFS Global Equity Trust -238 -168 7,070 Equity World Large Growth

Vanguard International Shares Index -186 -96 9,295 Equity World Large Blend

Realindex Emerging Markets-Class A -153 -108 348 Equity Emerging Markets

Bennelong Long Short Equity -138 -141 210 Alternative Strategies

Platinum International Fund -121 196 11,667 Equity World Large Blend

Perennial Australian Fixed Interest Tr -112 -58 684 Bonds - Australia

Mercer Global Listed Infrastructure -102 -326 73 Infrastructure - Global

CFS FC W Inv-CFS W Global Credit Income -97 -100 1,457 Diversified Credit

Russell International Shares A

*Cash and Super funds are excluded.

-85 -572 349 Equity World Large Blend



Funds – Asset Class

Equity Exodus Net outflows from equities in the first quarter of 2015

totalled more than AUD1.4 billion. Australian equities

lost AUD501.9 million, continuing the theme experienced

over the 2014 calendar year. Large-cap blend strategies

had the largest outflows over the quarter, shedding

more than AUD302.7 million. Value style strategies lost

AUD123.0 million compared to the significantly lower net

outflow of AUD31.9 million experienced by their growth

counterparts. Derivative income strategies made inroads

over the three months, accruing net inflows of AUD18.1

million and investors poured more than AUD95.6 million

into mid- to small-cap strategies.

Net outflows from international equities almost doubled that

of Australian equities with AUD994.1 billion over the quarter.

Large cap blend strategies impacted the most with net

outflows of over AUD1.0 billion. At the other end of the

spectrum, strong inflows were received by hedged

strategies totaling more than AUD313.7 million and Asia

Pacific strategies gained more than AUD167.6 million.

Looking at the fixed interest landscape, Australian bonds

and global bonds recorded inflows of AUD678.8 million

and AUD541.4 million respectively. While traditional

bonds gained substantial ground, diversified credit

strategies also gathered flows, although to a much lesser

extent, recording AUD127.7 million for the quarter. On an

annual basis, however, it was clear that Australian bonds

were out of favour, net outflows totalled AUD228.5

million. Diversified credit was popular, amassing

AUD752.4 million followed closely by global bonds with

AUD737.1 million.

.

.

Chart 18 – Flow by Asset Class ($bn)1

March Quarter 2015

Chart 19–24 – Top & Bottom Flow by Asset Class ($bn)1

March Quarter 2015

Australian Equity International Equity

Fixed Interest Cash Multisector *Flow/Beginning Size %

1 Aggregated from fund level data.



Funds – Exchange-Traded (ETFs)

ETF Asset Growth and Product Innovation Continues

The Australian exchange-traded product (ETP) industry continued to grow rapidly in the first quarter of 2015, with assets up 18.27% to AUD17.62 billion. Global equities dominated, but cash, US dollar, dividend harvesting, inverse equity, crude oil and listed property ETPs also did well. The common theme among that mixed bag is that investors appear to be focused on income, while the popularity of inverse, cash and currency ETPs suggests caution about the market outlook.

There were notable developments in the ETP market this year.

ANZ collaborated with ETF Securities to announce the launch of six new ETPs in late May – thereby becoming the first Australian bank to offer ETPs.

Magellan Global Equities Fund MGE is the first truly actively managed ETP, debuting on 2 March 2015. Magellan had rapid success with MGE raising nearly AUD125 million in the month of March.

UBS launched five ethical ETFs during the quarter, offering Australian and other regional equity products. By the end of March these ETFs had gathered more than AUD92 million, most of it (more than AUD80 million) in the Australian ethical ETF.

Later launches included the debut of Russell Australian Responsible Investment ETF RARI on 1 April 2015, BetaShares Strong Bear Hedged Fund BBOZ on 17 April and BetaShares NASDAQ 100 ETF NDQ on 26 May.

There was also a product closure during the quarter – Chimaera Capital announced that DIGGA Australian Mining ETF DGA would cease trading on 27 March 2015, citing “extremely weak market conditions across the Australian resources sector and low levels of funds under management”.

That took the number of ETPs to 117 at the time of writing, from 102 at the end of 2014.

Table 4 – Largest 10 ETFs

Rank Name Total Net Assets Mar-15 ($m) Market Share (%) Total Net Assets Mar-14 ($m)

1 SPDR® S&P/ASX 200 ETF 2654 15.1 2,287

2 iShares Core S&P 500 (AU) 1874 10.6 1,033

3 Vanguard Australian Shares ETF 986 5.6 583

4 iShares Global 100 (AU) 984 5.6 588

5 BetaShares Aus High Interest Cash ETF 782 4.4 376

6 Vanguard US Total Market Shares ETF 660 3.8 272

7 SPDR® S&P/ASX 200 Listed Property ETF 572 3.2 410

8 Vanguard Australian Shares High Yld ETF 524 3.0 376

9 iShares MSCI Emerging Markets (AU) 518 2.9 297

10 iShares Europe (AU) 464 2.6 278

Chart 25 – ETF Total Net Assets ($bn) Chart 26 – Total Net Assets by ETF Provider ($bn)

March Quarter 2015

*Market Share %



Platform Administration

Platforms Take in an Additional AUD5.6 Billion

Net flows to platforms over the March quarter reached AUD5.6 billion, a solid increase of AUD1.2 billion from the previous quarter. Platforms have now recorded their eighth consecutive quarter of total net inflows exceeding AUD4.0 billion.

Macquarie Group topped the platform leader board over the March quarter, collecting an additional AUD2.5 billion. Macquarie wrap solutions alone had net flows of over AUD2.2 billion; the bulk of this figure can be accounted for by the successful migration of the Trust Company business from Perpetual, totalling approximately AUD1.8 billion.

BT Financial Group secured the second largest inflows over the quarter with almost AUD1.5 billion. More than half of the flows for BT Financial Group came from two main platform products. BT Investment Wrap continued to receive strong net flows, amassing more than AUD433.0 million over the March quarter. BT Panorama collected AUD382.1 million in net flows, almost a 40% increase from the previous quarter.

Commonwealth/Colonial Group rounded out the top three with AUD508.6 million. Flows were directed to Colonial First State FirstChoice Pensions, securing more than AUD240.9 million over the March quarter and FirstWrap Super Wrap gained AUD202.6 million.

Over the first quarter of 2015, investment wraps gathered the largest slice of flows by far, with more than AUD3.4 billion. Superannuation master trusts collected AUD792.7 million, followed by superannuation wraps (AUD 567.8 million) and investment master trusts (AUD530.1 million).

BT Financial Group’s funds under administration topped AUD138 billion at the end of the quarter, followed by AMP Group with AUD107 billion, Commonwealth/Colonial Group (AUD99 billion), Macquarie Group (AUD49 billion) and OnePath/ANZ Group rounded out the top five with AUD44 billion. In terms of percentage growth over the quarter for funds under administration, three groups managed to reach double figures. Suncorp grew by an impressive 24.5%, followed by Macquarie Group (14.0%) and netwealth Investment grew more than 13.9%.

Chart 27 – Platform Quarterly Flow ($bn)

Chart 28 – Top & Bottom Platform Admin by Flow ($bn)

March Quarter 2015

*Market Share %



Platform Administration (cont'd)

Table 5 – Select Platform Product Additions

Broad Category Fund Name Platform Name Platform Provider

Australian Equity Bennelong WS Plus ex-20 Australian Eq BT SuperWrap BT Financial Group Ltd

Australian Equity Fidelity Australian Opportunities BT SuperWrap BT Financial Group Ltd

Australian Equity Tyndall Australian Share Concentrated CFS First Wrap, Macquarie Investment Manager, Macquarie Super and

Pension Manager

Commonwealth/Colonial Group, Macquarie Bank

Group

Fixed Interest Payden Global Income Opportunities Macquarie Investment Manager, Macquarie Super and Pension

Manager

Macquarie Bank Group

Fixed Interest PIMCO EQT Wh Uncons Bond B Macquarie Investment Manager, Macquarie Super and Pension

Manager

Macquarie Bank Group

Fixed Interest Franklin Templeton Global Aggregate Bd W Macquarie Investment Manager Macquarie Bank Group

International Equity Aberdeen Emerging Opportunities Macquarie Accumulator Macquarie Bank Group

International Equity

Fidelity Hedged Global Equities BT SuperWrap BT Financial Group Ltd

International Equity Platinum International Healthcare CFS First Wrap, Macquarie Investment Manager, Macquarie Super and

Pension Manager

Commonwealth/Colonial Group, Macquarie Bank

Group

Property Aust Unity Wholesale Healthcare Property netwealth Investment Wrap, netwealth Super Wrap netwealth



Appendices

Appendix 1 – Mandate Changes 13

Which managers are winning and losing mandates.

Appendix 2 – Platform Product Additions 13

Which products were added to platform menus. A list of platform product additions and removals

is available in Morningstar Direct™ Asset Flows – Workspace.

Appendix 3 – Listed Investment Companies (LICs) 20

List of top 10 LICs, their size, and market share.

Appendix 4 – Multi-manager Net Assets 20

Retail managers’ total net assets invested in multi-manager products.

Appendix 5 – APRA Superannuation Statistics 21

Details about the Australian superannuation industry.

Appendix 6 – APRA Superannuation Funds 22

List of the largest superannuation funds and their major features.

Appendix 7 – Mergers and Acquisitions 23

An overview of recent mergers and acquisitions, including any effects on Asset Flows reporting.

Appendix 8 – Asset Class Returns 23

Details the performance of main indices over various time periods.



Appendix 1 Table 1 – Mandate Changes

Which managers are winning and losing mandates.

Event Fund Name Manager Name Asset Class Value ($m) Date Reported

Awarded Canadian pension plan Ontario Pension Board AMP Capital Global Infrastructure 248 7/01/2015

Awarded VicSuper Payden & Rygel Alternatives 100 29/01/2015

Awarded Centric Wealth Maverick Capital Global Equity 50 2/02/2015

Awarded Commonwealth Bank Ardevora Asset Management Global Equity 200 4/02/2015

Awarded Meat Industry Employees' Superannuation Fund AllianceBernstein Equity NR 16/03/2015

Awarded NR Smarter Money Investments Fixed Income 50 20/03/2015

Awarded AMP Capital Salt Funds Management Equity 670 25/03/2015

Awarded VicSuper AllianceBernstein Global Equity 100 25/03/2015

NR = Not Reported

Appendix 2

Table 2 – Platform Product Additions

A list of platform product additions and removals is available in Morningstar Direct™ Asset Flows – Workspace.

Fund Name Platform Name

Australian Equity

Bennelong WS Plus ex-20 Australian Eq BT SuperWrap

Acadian Wholesale Aus Equity Long Short BT SuperWrap, CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Advance Australia Share Index W BT SuperWrap

AllianceBernstein Managed Volatility Eq BT Investment Wrap, BT SuperWrap, netwealth Investment Wrap, netwealth Super Wrap

AMP Capital Sustainable Share A Macquarie Accumulator

Ausbil MicroCap Macquarie Accumulator

Aust Unity Acorn Capital Ws Microcap Tr BT SuperWrap, CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Aviva Investors Prof Australian Equities BT SuperWrap

Aviva Investors Prof Small Companies Macquarie Accumulator

Bennelong ex-20 Aus Eq CFS FirstChoice Investments, CFS FirstChoice Pensions, CFS FirstChoice Personal Super

Bennelong ex-20 Aus Eq Sel CFS FirstChoice Employer Super

Bennelong ex-20 W Aus Eq CFS FirstChoice Wholesale Investments, CFS FirstChoice Wholesale Pension, CFS FirstChoice Wholesale Personal Super

BlackRock Scientific Aus Equity Fund BT SuperWrap, CFS First Wrap

BlackRock Wholesale Plus Australian Eq BT SuperWrap

BT Aus Share WS BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

BT Ironbark Karara WS Plus Aus Shr BT Investment Wrap, BT SuperWrap

BT Multi-Manager Aus Shr Retail BT Investment Wrap

BT Schroder WS Plus Australian Smllr Com BT Investment Wrap, BT SuperWrap

BT UBS WS Plus HALO Australian Share BT Investment Wrap, BT SuperWrap

BT WS Plus Core Australian Share Fund BT SuperWrap

CFS FC W Inv-Sanlam W Mgd Risk Aus Shr CFS First Wrap

Dimensional Australian Core Imptn Trust Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager

Fidelity Australian Opportunities BT SuperWrap

Fidelity Future Leaders BT SuperWrap



Appendix 2 (cont'd) Table 2 – Platform Product Additions



Fidelity WS Plus Australian Eqs Fd BT SuperWrap

Goldman Sachs Emerging Leaders Wholesale BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Ironbark Karara WS Plus Aust BT SuperWrap

Macquarie Dividend Run-Up Fund Macquarie Investment Manager

Macquarie High Conviction Macquarie Accumulator

NovaPort WS Smaller Companies Macquarie Accumulator

OC Premium Equity CFS First Wrap

OC Premium Small Comp CFS FirstChoice Investments, CFS FirstChoice Pensions, CFS FirstChoice Personal Super

OC W Premium Small Comp CFS FirstChoice Wholesale Investments, CFS FirstChoice Wholesale Pension, CFS FirstChoice Wholesale Personal Super

Pengana Australian Equities Core Macquarie Accumulator

Pengana Emerging Companies CFS First Wrap, Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager

Perennial Value Wealth Defender Aust Shr BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Perpetual Pure Microcap Fund Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager

Perpetual WS Plus Australian Fund BT SuperWrap

Prime Value Opportunities B BT SuperWrap

Regal Long Short Australian Equity Macquarie Accumulator

Sanlam Mgd Risk Aus Shr CFS FirstChoice Investments, CFS FirstChoice Pensions, CFS FirstChoice Personal Super

Sanlam W Mgd Risk Aus Shr CFS FirstChoice Wholesale Investments, CFS FirstChoice Wholesale Pension, CFS FirstChoice Wholesale Personal Super

Schroder Equity Opportunities Macquarie Investment Manager, Macquarie Super and Pension Manager

Schroder WS Plus Australian Equity Fd BT SuperWrap

SGH ICE CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Smallco Investment Macquarie Super and Pension Manager

SSgA Australian Managed Volatility Alpha BT SuperWrap, CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

T. Rowe Price WS Plus Australian Eq BT SuperWrap

The Montgomery Macquarie Investment Manager, Macquarie Super and Pension Manager

Tyndall Australian Share Concentrated CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Tyndall WS Plus Australian Shr Fd BT SuperWrap

Cash

YBR Smarter Money - Platform Investor BT Investment Wrap, BT SuperWrap, Macquarie Accumulator, Macquarie Super and Pension Manager

IOOF MultiMix Cash Enhanced Trust BT SuperWrap

MIF A BT Investment Wrap, BT SuperWrap

Vanguard Cash Plus Index Macquarie Accumulator

Fixed Interest

Advance Australia Fixed Interest Index BT SuperWrap

Advance International Fixed Intr Index W BT SuperWrap

AMP Capital Corporate Bond A Macquarie Accumulator

AMP Capital WS Plus Corporate Bond Fd BT SuperWrap

Antares Income Fund Macquarie Investment Manager, Macquarie Super and Pension Manager

Australian Unity Altius Bond BT Investment Wrap, BT SuperWrap

Balmain (MWMT) Mortgage Tr - IDPS Macquarie Accumulator, Macquarie Investment Manager

Balmain AQUA High Income Trust Macquarie Investment Manager

BT Franklin Templeton WS Plus Multi Bd BT Investment Wrap, BT SuperWrap

BT Goldman Sachs WS Plus Gr & Emrg Mkt BT Investment Wrap, BT SuperWrap

BT Macquarie WS Plus Income Opps BT Investment Wrap, BT SuperWrap

BT Multi-Manager Fixed Interest Retail BT Investment Wrap



Appendix 2 (cont'd)




BT Perpetual WS Plus Diversified Inc BT Investment Wrap, BT SuperWrap

BT PIMCO WS Plus Diversified Fix Int BT Investment Wrap, BT SuperWrap

BT PIMCO WS Plus Global Bond BT Investment Wrap, BT SuperWrap

BT WS Plus Fixed interest Fund BT SuperWrap

Franklin Temp Msect Bond CFS FirstChoice Investments, CFS FirstChoice Pensions, CFS FirstChoice Personal Super

Franklin Temp W Msect Bond CFS FirstChoice Wholesale Investments, CFS FirstChoice Wholesale Pension, CFS FirstChoice Wholesale Personal Super

Franklin Templeton Global Aggregate Bd W Macquarie Investment Manager

GAM Absolute Return Bond (AU) BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Goldman Sachs Global Strategic Bond BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Ibbotson Intl Bonds Active Hedged Trust netwealth Investment Wrap, netwealth Super Wrap

JPMorgan Global Strategic Bond Fund BT SuperWrap, CFS First Wrap

Kapstream Wholesale Absolute Ret Inc Fd Macquarie Accumulator

Kapstream WS Plus Absolute Ret Inc Fd BT SuperWrap

Legg Mason Brandywine Glbl Opp Fix Inc I BT SuperWrap

Macquarie Enhanced Aus Fixed Interest Macquarie Investment Manager

Macquarie Income Opportunities BT SuperWrap, CFS First Wrap, Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager

Payden Global Income Opportunities Macquarie Investment Manager, Macquarie Super and Pension Manager

Perennial Tactical Income Trust Macquarie Accumulator

Perpetual Dynamic Fxd Inc Perpetual Wealthfocus Pension, Perpetual WealthFocus Super Plan

PIMCO EQT Wh Uncons Bond B Macquarie Investment Manager, Macquarie Super and Pension Manager

PIMCO EQT Wh Uncons Bond C BT SuperWrap

Realm High Income - Wholesale BT Investment Wrap, BT SuperWrap, Macquarie Investment Manager

Schroder WS Plus Fixed income Fund BT SuperWrap

UBS WS Plus Australian Bond Fund BT SuperWrap

Vanguard Aust Corporate Fixed Interest BT Investment Wrap, BT SuperWrap

Vanguard Australian Govt Bd Idx netwealth Investment Wrap, netwealth Super Wrap

Vanguard Australian Infl-Lnkd Bond Idx netwealth Investment Wrap

Vanguard Diversified Bond Index BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Vanguard Int Credit Securities Idx Hdgd Macquarie Accumulator

International Equity EQT International Equity BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

90 West Global Natural Resources BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Aberdeen Emerging Opportunities Macquarie Accumulator

Aberdeen WS Plus Actively Hdg Intern BT SuperWrap

Advance International Share Index W BT SuperWrap

BT Fidelity WS Plus Global Equities BT Investment Wrap, BT SuperWrap

BT Global Emerging Markets Opportunit WS CFS First Wrap

BT Lazard WS Plus Emerging Markets Eq BT Investment Wrap, BT SuperWrap

BT Multi-Manager Intl Shr Retail BT Investment Wrap

BT Walter Scott WS Plus Global Equity BT Investment Wrap, BT SuperWrap

BT WS Plus Core Global Share Fund BT SuperWrap

BT WS Plus Global Emerging Markets Opp BT Investment Wrap, BT SuperWrap



Appendix 2 (cont'd)




CFS FC-Sanlam W Mgd Risk Glb Shr CFS First Wrap

CFS W Wrldwide Sustainabty CFS FirstChoice Wholesale Pension, CFS FirstChoice Wholesale Personal Super

CFS Wholesale Geared Global Share BT SuperWrap, CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

CFS Wrldwide Sustainabty CFS FirstChoice Investments, CFS FirstChoice Pensions, CFS FirstChoice Personal Super

Fidelity Global Demographics BT SuperWrap

Fidelity Hedged Global Equities BT SuperWrap

Ibbotson Intl Shares Passive Hedged Tr netwealth Investment Wrap, netwealth Super Wrap

Ibbotson Intl Shares Passive Unhedged Tr netwealth Investment Wrap, netwealth Super Wrap

Insync Global Dividend Growth CFS First Wrap

Invesco WS Global Opportunities-Class A netwealth Investment Wrap, netwealth Super Wrap

Macquarie Asia New Stars No.1 Fund Macquarie Accumulator

Magellan Global (Hedged) BT SuperWrap, CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Magellan High Conviction BT SuperWrap, CFS First Wrap, Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager

MFS Concentrated Global Equity Trust W Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager, netwealth Investment Wrap

MFS Global Growth Equity Trust Macquarie Investment Manager, Macquarie Super and Pension Manager

Morphic Global Opportunities BT SuperWrap, Macquarie Investment Manager

Pan-Tribal Global Equity Fund CFS First Wrap

Partners Group Global Value (AUD) W BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Perpetual Global Share Fund - Class A BT Investment Wrap, BT SuperWrap

Peters MacGregor Global BT Investment Wrap, BT SuperWrap

Platinum International Healthcare CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

PM Capital Emerging Asia Macquarie Investment Manager, Macquarie Super and Pension Manager

Polaris Global Equity Fund Macquarie Investment Manager, Macquarie Super and Pension Manager

Robeco Emerging Conservative Equity AUD BT SuperWrap

Sanlam Mgd Risk Glb Shr CFS FirstChoice Investments, CFS FirstChoice Pensions, CFS FirstChoice Personal Super

Sanlam W Mgd Risk Glb Shr CFS FirstChoice Investments, CFS FirstChoice Wholesale Pension, CFS FirstChoice Wholesale Personal Super

T. Rowe Price WS Plus Global Eq Fd BT SuperWrap

Tempo Global Equities Fund Macquarie Investment Manager

Threadneedle Global Equity Income Unhdgd CFS First Wrap

Vanguard Int Small Companies Index Hdgd Macquarie Accumulator

Wingate Wholesale Plus Global Equity Fd BT SuperWrap

Zurich Investments Global Growth Macquarie Investment Manager, Macquarie Super and Pension Manager

Zurich Investments Unhedged Global Gr Macquarie Investment Manager, Macquarie Super and Pension Manager, netwealth Investment Wrap, netwealth Super Wrap

Multialternative CFS FC W Inv-FirstChoice W Alternatives CFS First Wrap

HFA Diversified Investments HW units BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Ibbotson Diversified Alternatives Trust CFS First Wrap

Ironbark Global Diversified Alternatives CFS First Wrap

Man Diversified Alternatives BT SuperWrap

Neuberger Berman Abs Return Multi Strat BT Investment Wrap, BT SuperWrap, Macquarie Investment Manager

SLI Global Absolute Return Strategies Tr BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager



Appendix 2 (cont'd)




Multisector Allan Gray Australia Opportunity BT SuperWrap, CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

AMP Capital Australian Dynamic Markets A netwealth Investment Wrap, netwealth Super Wrap

BMO Pyrford Global Absolute Return BT Investment Wrap, BT SuperWrap

BT Cons Outlook WS BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

BT Magellan Wholesale Plus Global BT Investment Wrap, BT SuperWrap

CFS FC Multi-Index Balanced Class A BT SuperWrap

CFS FC Multi-Index Conservative Class A BT SuperWrap

CFS FC Multi-Index Diversified Class A BT SuperWrap

CFS FC WS Inv-Perpetual Split Growth CFS First Wrap

CFS FC-Sanlam W Mg Ris M-I Hi Gro CFS First Wrap

CFS Multi-Asset Real Return - Class A CFS First Wrap

Dimensional Multi-Factor Equity Trust Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager

FC M-Index Moderate CFS FirstChoice Investments, CFS FirstChoice Pensions, CFS FirstChoice Personal Super

FC M-Index Moderate Sel CFS FirstChoice Employer Super

FC M-Index W Moderate CFS FirstChoice Wholesale Pension, CFS FirstChoice Wholesale Personal Super

FirstChoice Diversified CFS FirstChoice Investments, CFS FirstChoice Pensions, CFS FirstChoice Personal Super

FirstChoice Diversified Sel CFS FirstChoice Employer Super

FirstChoice W Diversified CFS FirstChoice Wholesale Investments

FirstChoice W Multi-Idx Mod CFS FirstChoice Wholesale Investments

ING Tax Effective Income-Wholesale CFS First Wrap

Invesco W Protected Growth netwealth Investment Wrap, netwealth Super Wrap

MLC Wholesale Inflation Plus - Conserv Macquarie Investment Manager, Macquarie Super and Pension Manager

MLC Wholesale Inflation Plus - Moderate Macquarie Investment Manager, Macquarie Super and Pension Manager

OnePath OA IP-ING Tax Effective Inc EF Macquarie Investment Manager, Macquarie Super and Pension Manager

Optimix WS-Balanced Macquarie Accumulator

Optimix WS-Conservative A CFS First Wrap

Optimix WS-Growth A CFS First Wrap

Optimix WS-Moderate A CFS First Wrap

Perpetual Dvrsfd Real Rt Perpetual WealthFocus Investment Adv, Perpetual Wealthfocus Pension, Perpetual WealthFocus Super Plan

Pro-D High Growth CFS First Wrap

Sanlam Mg Risk M-I Hi Gro CFS FirstChoice Pensions, CFS FirstChoice Personal Super

Sanlam Mgd Rk M-I Hi Gro CFS FirstChoice Investments

Sanlam W Mg Ris M-I Hi Gro CFS FirstChoice Investments, CFS FirstChoice Wholesale Pension, CFS FirstChoice Wholesale Personal Super

SSgA Retirement Lifestyle Builder Strat BT Investment Wrap, BT SuperWrap

UBS Tactical Beta Fund - Balanced Macquarie Investment Manager, Macquarie Super and Pension Manager

UBS Tactical Beta Fund - Conservative Macquarie Investment Manager, Macquarie Super and Pension Manager

UBS Tactical Beta Fund - Growth Macquarie Investment Manager, Macquarie Super and Pension Manager

Multisector Lifestages 1940's Lifestage Fund - A BT Investment Wrap, BT SuperWrap

1950's Lifestage Fund - A BT Investment Wrap, BT SuperWrap








Appendix 2 (cont'd)




Other Aurora Dividend Income Trust Macquarie Investment Manager, Macquarie Super and Pension Manager, netwealth Investment Wrap, netwealth

Super Wrap

Perpetual Pure Equity Alpha BT SuperWrap, Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager

AQR Wholesale Managed Futures 1P BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

BT Man AHL Wholesale Plus Alpha (AUD) BT Investment Wrap, BT SuperWrap

BT Pure Alpha Fixed Income BT SuperWrap

Challenger GIF 4.50 cents pa 30 Jun 2016 BT SuperWrap, CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Challenger GIF 4.55 cents pa 30 Sep 2017 BT SuperWrap, CFS First Wrap

Challenger GIF 4.85 cents pa 30 Sep 2018 BT SuperWrap, CFS First Wrap

Challenger GIF 5.15 cents pa 31 Mar 2020 BT SuperWrap, CFS First Wrap

Ellerston Australian Market Neutral BT SuperWrap, Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager

FirstChoice WS Geared Growth Plus CFS First Wrap

Invesco WS Global Targeted Returns BT Investment Wrap, BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager, netwealth Investment Wrap, netwealth Super Wrap

K2 Wholesale Plus Australian Absolute Re BT SuperWrap

Macquarie Int Infrastructure Secs Unhdgd BT SuperWrap

Macquarie Step XI - S&P/ASX 200 Index Macquarie Investment Manager

Magellan Infrastructure (Unhedged) BT SuperWrap, CFS First Wrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Man AHL Alpha (AUD) netwealth Investment Wrap, netwealth Super Wrap

Man OM-IP 130 Plus Limited Macquarie Investment Manager

Man OM-IP 140 Plus (AUD) Limited Macquarie Investment Manager

Man OM-IP 3AHL Limited Macquarie Investment Manager

Man OM-IP Eclipse Limited Macquarie Investment Manager

Man OM-IP Strategic Limited Macquarie Investment Manager

Man Series 11 OM-IP 220 Limited Macquarie Investment Manager



Odey International Fund BT Investment Wrap, BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Pengana Asia Special Events Macquarie Investment Manager, Macquarie Super and Pension Manager

Plato Australian Shares Inc Fd BT Investment Wrap, BT SuperWrap, Macquarie Investment Manager, Macquarie Super and Pension Manager

Plato Australian Shares Income Macquarie Accumulator

PM Capital Global Equity Income CFS First Wrap, netwealth Investment Wrap, netwealth Super Wrap

RARE Infrastructure Value Unhedged CFS First Wrap

RARE Infrastructure WS Plus Val Fd Hg BT SuperWrap

RARE Infrastructure WS Plus Val Unhdg BT SuperWrap

Russell Global Listed Infra $A Hdg BT SuperWrap

SLI Absolute Return Global Bond Str Macquarie Investment Manager, Macquarie Super and Pension Manager

Supervised High Yield Macquarie Investment Manager

Triple3 Volatility Advantage Class A Macquarie Investment Manager, Macquarie Super and Pension Manager, netwealth Investment Wrap, netwealth Super Wrap

Winton Global Alpha Macquarie Accumulator



Appendix 2 (cont'd)




Property Advance Australia Property Sec Index W BT SuperWrap

APN WS Plus AREIT Fund BT SuperWrap

Aust Unity Wholesale Healthcare Property netwealth Investment Wrap, netwealth Super Wrap

BT WS Plus Global Property Securities Fd BT SuperWrap

BT WS Plus Property Securities Fund BT SuperWrap

Centric DHA Residential Property Fund Macquarie Investment Manager

Charter Hall Direct Industrial No.2 - W Macquarie Investment Manager

Charter Hall Direct Industrial No.3 W BT SuperWrap, Macquarie Investment Manager

Charter Hall Direct Office Wholesale A Macquarie Investment Manager

Charter Hall Direct Property Wholesale Macquarie Investment Manager

Charter Hall Direct VA Trust Macquarie Investment Manager

Charter Hall Direct Workzone Trust Ws Macquarie Investment Manager

Cromwell Direct Property Macquarie Investment Manager

Cromwell Phoenix Core Listed Property netwealth Investment Wrap, netwealth Super Wrap

EQT SGH Wholesale Prop Income Macquarie Investment Manager, Macquarie Super and Pension Manager

Freehold AREITs & Listed Infrastructure BT SuperWrap

Maxim Property Securities Macquarie Investment Manager, netwealth Investment Wrap

Presima Global Property Sec Concentrated Macquarie Investment Manager, Macquarie Super and Pension Manager

RREEF Paladin Property Securities BT SuperWrap, CFS First Wrap, Macquarie Accumulator, Macquarie Investment Manager, Macquarie Super and Pension Manager



Appendix 3

Table 3 – Listed Investment Companies (LICs)

Rank LIC Name Fund Size $m Mar 2015 Market Share (%)

1 Australian Foundation InvesCo Ord 6,866 24.4

2 Argo Ord 5,287 18.8

3 Milton Corporation Ord 2,984 10.6

4 Australian United Ord 1,000 3.6

5 BKI Investment Company Ord 991 3.5

6 Carlton Ord 929 3.3

7 WAM Capital Ord 851 3.0

8 Diversified United Ord 817 2.9

9 Djerriwarrh Ord 809 2.9

10 Magellan Flagship Fund Ord 751 2.7

Other 6,838 24.3

Total 28,122 100

Appendix 4

Table 4 – Multi-Manager Net Assets

Multi-Manager Net Assets Mar-15 ($m) Quarter Change ($m) Annual Change ($m)

MLC/Jana/Plum 90,350 5,699 14,404

AMPCI 28,166 1,737 3,289

Russell Multi-Manager Funds 26,778 1,253 980

Colonial First State FirstChoice 24,148 1,717 1,866

BT Financial Group/Advance 20,226 418 2,744

ipac/AXA 19,565 1,414 2,996

IOOF Group 10,187 408 1,031

OnePath Optimix 8,167 81 -1,208

Ibbotson Associates 3,968 291 532

Aon MT 2,692 170 380

MBF ClearView 1,245 26 -23

Suncorp WealthSmart 976 62 91

Navigator Australia 426 13 -26

Australian Unity 146 3 2

Total 237,041 13,292 27,059



Appendix 21

Table 5 – APRA Superannuation Total Assets (June 2013)

Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13

Net contribution flows ($mn) 38,353 41,347 57,990 131,522 58,888 57,481 48,183 50,204 52,652 46,824

Total assets ($mn) 546,719 634,894 751,393 904,180 1,172,758 1,129,697 1,063,237 1,190,336 1,336,454 1,399,200

Source: APRA Annual Superannuation Bulletin June 2013, Table 7. Retrieved from http://www.apra.gov.au/Super/Publications/Pages/annual-superannuation-publication.aspx

Table 6 – APRA Superannuation Distribution of Entities (June 2013)

Fund Type Number of Entities Number of Member Accounts ('000) Assets ($billion) Average Account Balance ('$000)

Corporate 108 512.0 61.3 119.7

Industry 52 11,524.0 324.7 28.2

Public sector 38 3,337.0 256.9 77.0

Retail 127 14,395.0 422.8 29.4

Small (incl SMSF) 512,375 968.0 508.0 524.9

Balance of life office statutory funds 45.4 Total 512,700 30,736.0 1,619.0

Pooled superannuation trusts 61 99.4 Pooled superannuation trusts (PSTs) are not included in total assets as their assets are captured in other superannuation entity categories. Source: APRA Annual Superannuation Bulletin June 2013, Key Statistics. Retrieved from http://www.apra.gov.au/Super/Publications/Pages/annual-superannuation-publication.aspx

Table 7 – APRA Superannuation Asset Allocation of Default Strategy (June 2013)

Asset Class Corporate (%) Industry (%) Public sector (%) Retail (%) Total (%) Assets ($mn)

Australian shares 30.0 29.0 22.0 26.0 26.0 123,462

International shares 28.0 25.0 27.0 22.0 25.0 116,204

Listed property 1.0 1.0 4.0 4.0 2.0 10,766

Unlisted property 7.0 10.0 6.0 2.0 7.0 33,554

Australian fixed interest 14.0 6.0 7.0 15.0 9.0 39,722

International fixed interest 6.0 5.0 7.0 7.0 6.0 27,575

Cash 6.0 6.0 9.0 14.0 8.0 38,034

Other assets 8.0 19.0 18.0 9.0 16.0 76,811

Total 100.0 100.0 100.0 100.0 100.0 466,129

Source: APRA Annual Superannuation Bulletin June 2013, Table 18. Retrieved from http://www.apra.gov.au/Super/Publications/Pages/annual-superannuation-publication.aspx

Table 8 – APRA Superannuation Manner of Investment (March 2015)

(Industry, retail, public sector and corporate) Assets – Investments ($mn) %

Directly held 486,225 36

Cash management trust 2,073 0

Life company 196,815 15

Listed retail trust 26,714 2

Pooled superannuation trust 126,774 9

Unlisted retail trust 119,811 9

Wholesale trust 320,681 24

Other indirect investment 68,984 5

Total 1,348,077 100

Source: APRA Quarterly Superannuation Performance March 2015, Table 1b. Retrieved from http://www.apra.gov.au/Super/Publications/Pages/quarterly-superannuation-performance.aspx

http://www.apra.gov.au/Super/Publications/Pages/annual-superannuation-publication.aspx



http://www.apra.gov.au/Super/Publications/Pages/quarterly-superannuation-performance.aspx



Appendix 6

Table 9 – APRA Superannuation Fund Level (June 2014)

Fund Name

Fund Type

Net

Assets

($m)

Net Annual

Contribution

Flows ($m)

Number of

Members

# of

Options

Growth

Assets (%)

in Default

Strategy*a

Income

Assets (%)

in Default

Strategy*a

Proportion

of assets

(%) in

Default

Strategy a

Public

Offer?

Benefit

Structure a

AustralianSuper Industry 80,014 5,912 2,120,160 35 64 18 72.5 Yes Hybrid

Colonial First State FirstChoice Superannuation Trust Retail 58,993 2,469 770,439 696 78 16 0.3 Yes Accumulation

State Public Sector Superannuation Scheme Public Sector 51,900 3,004 538,921 27 39 40 53.9 No Hybrid

AMP Superannuation Savings Trust Retail 51,760 -10,849 2,408,513 312 75 21 15.8 Yes Hybrid

Retirement Wrap Retail 48,799 3,568 824,458 5403 64 19 5.4 Yes Hybrid

First State Superannuation Scheme Public Sector 47,465 2,283 779,223 25 61 22 60.7 Yes Hybrid

Unisuper Industry 44,223 1,583 471,520 15 69 25 22.8 No Hybrid

The Universal Super Scheme Retail 42,256 671 1,171,162 494 63 25 27.3 Yes Accumulation

Retail Employees Superannuation Trust Industry 34,202 2,366 2,051,560 26 64 17 85.4 Yes Hybrid

OnePath Masterfund Retail 32,370 585 1,105,742 336 64 27 9.4 Yes Hybrid

Sunsuper Superannuation Fund Industry 30,140 2,517 1,139,935 40 62 17 68.6 Yes Hybrid

Health Employees Superannuation Trust Australia Industry 28,858 1,820 800,257 20 63 13 79.2 Yes Accumulation

Construction & Building Unions Superannuation Industry 27,572 1,555 722,727 9 62 18 99.1 Yes Accumulation

Wealth Personal Superannuation and Pension Fund Retail 21,923 2,577 174,252 4267 66 23 7.1 Yes Accumulation

ASGARD Independence Plan Division Two Retail 19,288 326 345,612 1162 53 29 30.4 Yes Accumulation

Mercer Super Trust Retail 18,705 -465 226,192 153 71 23 42.1 Yes Hybrid

IOOF Portfolio Service Superannuation Fund Retail 16,764 1,073 373,793 3417 42 49 7.5 Yes Hybrid

Public Sector Superannuation Scheme Public Sector 16,614 -66 233,612 2 72 13 99.3 No Defined benefit

Plum Superannuation Fund Retail 16,513 2,090 159.205 91 68 16 30.6 Yes Hybrid

Telstra Superannuation Scheme Corporate 16,083 243 104,996 11 75 13 23.1 Yes Hybrid

MLC Superannuation Fund Retail 15,794 -374 87,042 1919 0 100 10.0 Yes Accumulation

HOSTPLUS Superannuation Fund Industry 15,683 1,245 1,006,331 20 71 8 87.2 Yes Accumulation

State Super Retirement Fund Retail 13,587 955 54,444 38 50 46 28.3 Yes Accumulation

Victorian Superannuation Fund Public Sector 13,471 833 240,465 9 85 15 47.4 Yes Hybrid

Macquarie Superannuation Plan Retail 13,085 670 74,222 2490 0 100 11.6 Yes Accumulation

AMP Retirement Trust Retail 11,965 11,108 245,524 218 - - - Yes Accumulation

Catholic Superannuation Fund Industry 11,104 222 70,950 13 62 14 59.4 Yes Accumulation

Care Super Industry 10,370 450 259,363 13 60 21 68.2 Yes Accumulation

Auscoal Superannuation Fund Industry 9,021 464 75,529 26 49 29 59.2 Yes Hybrid

Commonwealth Bank Group Super Corporate 8,983 473 74,066 13 63 30 38.4 No Hybrid

Local Government Superannuation Scheme Public Sector 8,667 230 86,265 14 68 12 48.6 No Hybrid

MTAA Superannuation Fund Industry 7,644 161 266,880 14 57 14 79.5 Yes Accumulation

Qantas Superannuation Plan Corporate 7,223 -107 33,494 7 61 40 66.5 No Hybrid

Australia Post Superannuation Scheme Public Sector 7,151 -97 41,790 2 0 100 13.9 No Hybrid

Local Authorities Superannuation Fund Public Sector 6,918 813 98,325 9 60 16 41.7 No Hybrid

equipsuper Industry 6,595 124 341,059 23 67 20 26.8 Yes Hybrid

Public Sector Superannuation Accumulation Plan Public Sector 6,414 980 241,022 9 72 13 86.5 No Accumulation

Suncorp Master Trust Retail 6,409 -104 69,111 199 37 60 7.4 Yes Accumulation

Australian Catholic Superannuation and Retirement Fund Industry 6,176 275 92,995 22 57 16 68.7 Yes Accumulation

NGS Super Industry 6,132 240 104,322 12 67 19 63.3 Yes Hybrid

Other 198,094 3,169 8,500,133 Total 1,094,928 44,992 28,376,812

* Growth Assets in default strategy includes Australian and international equity, listed and unlisted property and other.

Income Assets in default strategy includes Australian and international fixed income and cash.

More detailed asset allocation breakdown is available on the APRA website. a Data as at June 2013

Source: APRA Superannuation Fund-level Profiles and Financial Performance June 2014 (interim), http://www.apra.gov.au/Super/Publications/Pages/superannuation-fund-level-publications.aspx

http://www.apra.gov.au/Super/Publications/Pages/superannuation-fund-level-publications.aspx



Appendix 23

Table 10 – Recent Mergers and Acquisitions

Affected Entities Date Event

Aurora Funds Management Limited, Keybridge Capital Limited Mar-15 Keybridge Capital Limited has acquired Aurora Funds Management Limited, a wholly-owned subsidiary of

Aurora Funds Limited.

Cromwell Property Group, Valad Europe Jan-15 Cromwell Property Group has acquired Valad Europe.

Neuberger Berman Dec-14 Neuberger Berman has become 100% employee owned.

Treasury Group, Northern Light Capital Group Nov-14 Treasury Group has mergered with Northern Lights Capital.

Tyndall Investment Management, Nikko Asset Management Sep-14 Following Nikko AM's acqusition of Tyndlal Investment Management in March 2011, Tyndall Investment

Management will be known as Nikko AM Limited going forward.

OneVue, Select Asset Management Aug-14 OneVue has acquired Select Asset Management and Select Investment Partners.

IOOF Group, SFG Australia Aug-14 IOOF Group has acquired SFG Australia.

Equity Trustees, ANZ Trustees Jul-14 Equity Trustees has acquired ANZ Trustees.

Legg Mason, Martin Currie Jul-14 Legg Mason Inc. has acquired Martin Currie.

Challenger, Access Capital Advisers Apr-14 Challenger Group and Access Capital Advisers have merged the infrastructure investment operations.

Aberdeen Asset Management, Scottish Widows Investment

Partnership

Apr-14 Aberdeen Asset Management has acquired Scottish Widows Investment Partnership.

Blue Sky Alternative Investments, Investment Science Mar-14 Blue Sky Alternative Investments has acquired Investment Science Pty Ltd.

Ausbil Dexia, New York Life Investment Feb-14 New York Life Investments has acquired Dexia Asset Management, which includes Australian business Ausbil

Dexia.

Westpac Group, Lloyds Banking Group Jan-14 Westpac has acquired Lloyds Banking Group’s Australian asset finance business Capital Finance Australia and

corporate loan portfolio BOS International.

Perpetual, The Trust Company Dec-13 Perpetual Limited has acquired The Trust Company Limited.

Nikko Asset Management, Treasury Asia Asset Management Oct-13 Nikko Asset Management, the parent company of Tyndall AM, has acquired Treasury Asia Asset Management.

Deutsche Asset Management (Aus), Ironbark Asset Management Jun-13 Ironbark Asset Management has acquired Deutsche Asset Management (DAMAL).

Care Super, Asset Super Dec-12 Care Super and Asset Super have merged.

IOOF, Plan B Oct-12 IOOF Holdings has acquired Plan B Group Holdings.

BNP Paribas, MFS Investment Management Sep-12 The distribution agreement between MFS Investment Management and BNP Paribas has ended. MFS

Investment Management reports separate TAUM from the September 2012 quarter.

Challenger, MIR Investment Management May-12 Challenger Group has acquired MIR Investment Management.

Denison Funds Management, Viento Property Jun-12 Denison Funds Management has acquired Viento Property.

Man Group, FRM Australia May-12 Man Group has acquired FRM Australia. Man Group currently does not provide TAUM data.

Orbis Investment Management, Allan Gray Australia Apr-12 Orbis Investment Management has split TAUM data between Orbis Investment Advisory Pty Ltd and Allan

Gray Australia Pty Ltd, following a rebranding of the Orbis company behind their Australian Equity strategy as

Allan Gray Australia Pty Ltd.

Appendix 8

Table 11 – Asset Class Returns (31 March 2015)

Aust. Equity

(%)

Small Caps

(%)

Intl. Equity

(%)

A-REITS

(%)

Global REITS (H)

(%)

Aust. Fixed

Interest (%)

Intl. Fixed Interest

(H) (%)

Cash

(%)

Emerging

Markets (%)

Infrastructure

(H) (%)

3-months 10.3 7.3 9.6 9.2 6.9 2.7 2.6 0.6 9.6 4.4

6-months 13.8 3.1 18.5 21.6 20.5 6.7 5.5 1.3 12.0 8.8

1 year 14.1 2.3 29.1 34.4 28.0 11.1 10.3 2.6 22.3 18.1

Aust. Equity – S&P/ASX 200 TR

Small Caps – S&P/ASX Small Ordinaries TR

Intl. Equity – MSCI World Ex Australia NR AUD

A-REITs – S&P/ASX 300 A-REITs (H)

Global REITS (H) – UBS Global Investors Ex AUS NR Hdg AUD Aust.

Fixed Interest – Bloomberg AusBond Composite 0+ Yr TR AUD

Intl. Fixed Interest (H) – BarCap Global Aggregate TR Hdg AUD

Cash – RBA Bank Accepted Bills 90 Days

Emerging Markets – MSCI EM GR AUD

Infrastructure (H) – S&P Global Infrastructure NR Hdg AUD

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