The Australian Prudential Regulation Authority (APRA) today released the Quarterly Superannuation Performance publication which reveals that superannuation assets now exceed $800 billion.
Total superannuation assets rose during the December 2005 quarter by 4.1 per cent to $844.6 billion.
Industry funds showed the strongest growth during the quarter, with assets increasing by 5.9 per cent ($7.6 billion) to $137.2 billion while retail fund assets grew by 4.4 per cent ($11.4 billion) to $271.5 billion during the December 2005 quarter.
Public sector fund assets grew by 3.9 per cent ($5.3 billion) to stand at $141.9 billion, while self-managed superannuation funds increased by 3.8 per cent ($7 billion) to $190.3 billion. Corporate fund assets grew by 2.3 per cent ($1.2 billion) to $55.8 billion during the December quarter.
Contributions to funds with at least $50 million in assets during the December 2005 quarter were $14.6 billion, with employers contributing $10.0 billion and members contributing $4.3 billion. Other contributions, including spouse contribution and government co-contributions, totalled $284 million.
Retail funds received 41.4 per cent ($6.1 billion) of total contributions over the quarter. Industry funds received 27.0 per cent ($3.9 billion), public sector funds received 25.3 per cent ($3.7 billion) and corporate funds 6.3 per cent ($917 million).
At the end of December 2005, 29.7 per cent of superannuation assets ($178.2 billion) was invested in wholesale trusts and 23.9 per cent ($143.3 billion) was invested in life insurance companies. Assets managed through individual mandates comprised 21.1 per cent ($126.2 billion) of superannuation assets.
The return on assets was 3.3 per cent for the December 2005 quarter. The return for public sector funds was 3.5 per cent, corporate funds 3.4 per cent, retail funds 3.3 per cent and industry funds 3.2 per cent.
"The statistics show the strong growth and underlying strength of Australia's superannuation industry, which has been experiencing the greatest period of asset growth and change since it first evolved as a retirement investment scheme for workers," APRA Deputy Chairman Mr Ross Jones said.
Copies of Quarterly Superannuation Performance are available on APRA's website at: http://www.apra.gov.au/Statistics/Quarterly-Superannuation-Performance.cfm
APRA's Annual Superannuation Bulletin will be released on 20 April. The Bulletin provides information on the whole of the superannuation industry and comprises statistics on all superannuation entities based on actual audited figures reported by the superannuation entity.
ENDS
Background
Data in the Quarterly Superannuation Performance publication are sourced from regulatory returns submitted to APRA under the Financial Sector (Collection of Data) Act 2001 by superannuation entities with at least $50 million in assets. Data on self-managed superannuation funds is provided by the Australian Taxation Office (ATO) and has been updated in this edition. More comprehensive statistics on self-managed superannuation funds is included in the Annual Superannuation Bulletin.
In addition to revision to data that follow normal quality assurance processes to compile APRA statistics publications, there has been a significant improvement in the methodology to determine total superannuation assets.
The revision of total superannuation assets in the current issue of Quarterly Superannuation Performance is primarily attributable to a better calculation of the balance of superannuation funds held within statutory funds of life offices. The balance of life office funds is now calculated as the superannuation assets in life office statutory funds, as reported to APRA by life offices, less investments in life office funds reported to APRA by superannuation entities, including pooled superannuation trusts.
As part of the normal data quality assurance process, APRA reviewed the classification of superannuation entities and included more up to date information from resubmissions of data by trustees. This resulted in material revisions to data for corporate funds in particular. Updated results for the June 2005 quarter are based on audited submissions.
The Australian Taxation Office has also revised self-managed superannuation fund data from 2000.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.
Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276
All other inquiries:
APRA Contact Centre
1300 131 060
