Industry super funds now hold more assets than retail funds

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Industry super funds now hold more assets than retail funds, the latest APRA superannuation statistics have revealed.

During the June 2018 quarter the total assets of industry funds exceeded the assets in retail funds. At the end of the financial year there was $631.6 billion in industry funds compared to $622.3 billion in retail funds.Total superannuation assets, industry super funds versus retail super funds, in billions of dollars

Data source: June 2018 APRA Quarterly Superannuation Performance statistics

Industry Super Australia (ISA) said members were “voting with their feet” – ascribing the growth in assets in industry funds to a “surge” in benefit inflows and investment performance.

“New APRA data shows a wave of Australians shifting their retirement savings into consistently high-performing industry super funds.”

ISA said that benefits inflows to industry funds had “leapt” around 250% in recent years – from $12.5 billion three years ago to $32.5 billion in 2017/18.

“The sheer scale of these transfers is significant – last year they exceeded the total employer Superannuation Guarantee contributions received by the six million industry super fund members.”

The increase in assets was also helped by investment returns, with industry funds recording a net return of 9.8% for 2017/18 – 2.4% higher than retail funds.

“The same 2.4 per cent net outperformance was evident over the past five years to June 2018 as well.”

Bernie Dean – who is set to become Chief Executive of Industry Super Australia on 1 September – said that: “The continued outperformance shows it is never too late to consider an industry fund”.

“Industry Super Funds remain wholly committed to putting members first and finding ways to deliver them the best possible retirement,” he said.

Total super assets over $2.7 trillion

The APRA statistics also show that total superannuation assets have exceeded $2.7 trillion for the first time.

As at 30 June 2018 there was $2.709 trillion in superannuation, up 7.9% compared to June 2017, according to the June 2018 APRA Quarterly Superannuation Performance statistics.

Total assets in APRA-regulated funds was up 9.1% for the financial year, to $1,764 billion, including $675.6 billion of MySuper product assets (up 13.6%).

There was $749.9 billion in SMSFs, up 6.4% for the year.

Total superannuation assets, by sector, June 2018

Data source: June 2018 APRA Quarterly Superannuation Performance statistics

Total contributions declined 6.5% in 2017/18, to $109.4 billion, compared to $117.0 billion in 2016/17.

Total benefit payments were also down, 4.7%, to $70.4 billion, compared to $73.8 billion in the prior financial year.

APRA calculates the industry-wide Rate of Return (ROR) for super funds with more than four members for 2017/18 as 7.6%. The five year average annualised ROR to 30 June 2018 was 7.9%.

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