The Australian Prudential Regulation Authority (APRA) today released its Annual Superannuation Bulletin which includes a wide range of statistics for the full financial year to 30 June 2007. Total superannuation assets rose in the period by $225.4 billion, or 24.6 per cent, to $1.14 trillion.
Corporate funds showed the largest growth during the year, with assets increasing by 32.6 per cent to stand at $69.2 billion. Industry funds assets increased by 31.3 per cent to $197.3 billion, small funds 30.1 per cent to $286.6 billion, Retail funds by 23.7 per cent to $369.7 billion and public sector funds by 16.3 per cent to $177.6 billion.
For the year to 30 June 2007, contributions to all superannuation entities totalled $122.6 billion, with employers contributing $64.7 billion and member contributions totalling $56.3 billion. Other contributions, including spouse contributions and government co-contributions, totalled $1.6 billion.
Contributions to funds with more than four members totalled $96.1 billion. Of these funds, retail funds received 46.8 per cent ($45.0 billion) of total contributions, public sector funds 25.0 per cent ($24.0 billion), industry funds 24.0 per cent ($23.1 billion) and corporate funds 4.2 per cent ($4.0 billion).
Benefit payments from superannuation entities were $41.1 billion for the year to 30 June 2007, and net rollovers totalled $7.2 billion.
The return on assets (ROA) for superannuation entities with more than four members was 13.2 per cent for the year to 30 June 2007. Corporate funds had an ROA of 14.7 per cent, followed by industry funds with 14.2 per cent, public sector funds with 13.3 per cent and retail funds with 12.5 per cent.
The Bulletin includes for the first time information on the manner in which superannuation funds invest their assets, with figures on the number of investment managers, on direct and indirect investments, and on investments in associated parties.
The publication shows that, on average, funds used more than three times the number of investment managers at June 2007 than they did at June 2004. The average number of investment managers per fund rose from 1.4 at June 2004 to 4.6 at June 2007. In addition, the proportion of funds that directly invested all their assets decreased from 24 per cent to 6 per cent over the three years to June 2007.
These changes can be largely attributed to the exit of funds that either invested directly, or didn’t use investment managers. Of the 1,277 funds that exited the industry since June 2004, more than 70 per cent did not use an investment manager and more than 30 per cent invested all assets directly.
In addition, the proportion of funds that invested in associated parties - entities with which the fund has a relationship - increased from 27 per cent to 43 per cent over the three years to June 2007.
The Bulletin also reports for the first time information on death and disability insurance in superannuation. Death and disability insurance has become more prominent in the superannuation industry, with the proportion of funds that provide insurance increasing from 61.5 per cent at June 2004 to 75.1 per cent at June 2007.
This trend corresponds with an increase in the amount of premiums paid by funds on behalf of members, and an increase in proceeds received by funds on death or disablement of a member. Premiums increased 56.9 per cent from $1,333 million at June 2004 to $2,092 million at June 2007, whilst proceeds increased 47.0 per cent from $619 million at June 2004 to $909 million at June 2007.
Copies of the Annual Superannuation Bulletin are available on APRA’s website at www.apra.gov.au/Statistics/Annual-Superannuation-Publication.cfm.
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 $3 trillion in assets for 21 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.
