$2.1 trillion in superannuation, APRA-regulated fund consolidation continues

There was almost $2.1 trillion in total superannuation assets as at 30 June 2016, according to the recently released superannuation statistics from APRA.

This includes $1.292.24 billion in APRA-regulated funds, of which $473.65 billion was in MySuper products, and $621.70 billion in SMSFs.

“Over the 10 years from June 2006 to June 2016, total superannuation industry assets increased by 132.1 per cent from $0.9 trillion to $2.1 trillion. Over this period, APRA-regulated assets increased by 126.7 per cent from $570.1 billion to $1,292.2 billion and SMSF assets increased by 206.0 per cent from $203.2 billion to $621.7 billion,” said APRA, in the 2016 Annual Superannuation Bulletin.

“At 30 June 2016, small funds which include SMSFs, small APRA funds and single-member approved deposit funds accounted for 29.7 per cent of total assets. Retail funds held 26.0 per cent of total assets, industry funds held 22.2 per cent, public sector funds held 17.0 per cent and corporate funds held 2.6 per cent.”

APRA says the annual rate of return (ROR) for APRA-regulated funds was 2.9% for the 2015/16 financial year. The five year average annualised ROR was 7.4% and 4.6% over 10 years.

Of the assets in APRA-regulated funds $744.9 billion is in funds classified as ‘not-for-profit’, across 14,067 member accounts, with $545.4 million in ‘for-profit’ funds, across 12,978 accounts.

While total superannuation assets has increased, the trend for consolidation in the number of funds has continued – at least in terms of large super funds.

Number of super funds, by type, excluding small funds

Though this trend doesn’t extend to small super funds, driven by increasing numbers of SMSFs.

Number of small super funds - including SMSFs and SAFs

Though APRA does warn about relying too heavily on the data, which may be subject to revisions: “APRA recommends that users of the statistics exercise caution in analysing and interpreting the reports, particularly while the annual superannuation data collection is still relatively new.”

“During this early phase of a new collection, the systems and processes for collecting and reporting data in accordance with the new reporting requirements are not fully embedded across the industry. It will therefore take time for the information reported to APRA to reach an appropriate level of quality and consistency.”

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