Industry super funds gaining on SMSFs, retail funds losing on rollovers

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Industry super funds are gaining on SMSFs in terms of superannuation assets, while retail funds are losing money to rollovers, according to the latest statistics from APRA.

The APRA Quarterly Superannuation Performance statistics for March 2019 has total superannuation assets at $2,782.6 billion, up 6.7% from March 2018.

Industry funds gaining on SMSFs

SMSFs currently hold the most assets of any type of super fund, though industry funds are closing the gap.

As at March 2019 SMSFs held $746.6 billion in assets, compared to $677.5 billion in industry funds and $623.4 billion in retail funds. Though industry funds grew by 7.61% for the quarter and 13.14% for the year to March, compared to 5.84% and 3.45% for retail funds and 4.24% and 4.46% for SMSFs. Or, industry funds grew by $78.7 billion, retail by $20.8 billion and SMSFs by $31.9 billion in the year to March 2019

Industry funds overtook retail funds, in terms of assets, during the June 2018 quarter.

Rollovers favouring industry funds and SMSFs

Industry funds are growing from rollovers, while retail funds shrink. For the March quarter industry funds gained $4.418 billion from rollovers, on a net basis, while retail funds lost $4.014 billion.

Though both types of funds are losing money to SMSFs. Industry funds rolled, a net of, $168 million to SMSFs in the March quarter, while retail funds rolled over $639 million. However there appears to be a trend of decreasing rollovers to SMSFs, at least for industry funds, over the year to March.

Benefit payments 50-50 lump sum versus pension

Both contributions and benefit payments continue to grow. $26.706 billion was contributed in the March 2019 quarter, up 3.5% from the March 2018 quarter.

Total benefit payments grew faster, up 8.6% over the same period to $18.955 billion for the quarter. This was almost 50-50 lump sum and pension payments, with $9.461 billion paid out as lump sums and $9.494 billion in pensions.

APRA calculates that super funds with more than four members (excluding SMSFs and Small APRA funds) had a rate of return of 6.9% for the year ending March 2019. The five year average annualised ROR was also 6.9%.

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