September 1998 Superannuation Trends (PDF - 35kb)

Total superannuation assets stood at $364.6 billion as at 30 September this year. This represented a growth rate of 0.6% for the September quarter, or 9% during the previous 12 months.

This is one of the key statistics of the latest edition of APRA's Insurance and Superannuation Bulletin released today by the Chief Executive Officer, Graeme Thompson.

APRAs quarterly Bulletin is designed, among other things, to provide a timely and comprehensive snapshot of the size and structure of the superannuation, life and general insurance sectors.

Other statistics in the September quarter Bulletin show that:

• Contributions rose by 22.3% during the September 1998 quarter over the September 1997 quarter, or 20.4% during the 12 months ended 30 September this year, an increase from $29.6 billion to $35.6 billion for the year.
• Strongest growth came from member contributions. They increased by 31% over the previous year to $13.8 billion.
• Net contributions (ie. contributions less benefits) totalling $14.4 billion - a rise of $3.6 billion or 33.1% - flowed into superannuation during the 12 months to September 1998.

According to the Bulletin, self-managed or DIY funds were the fastest growing market segment with assets increasing by 20% during the year ended 30 September. In the same period, industry fund and retail fund assets both grew by 17%.

Reflecting continuing strong levels of consolidation and rationalisation in how companies are managing their superannuation, corporate fund assets grew by only 3% during the year, while public sector fund assets grew by 6%.

Remaining at their usual levels, inward transfers accounted for 38% of all money deposited into superannuation during the September quarter.

The accompanying attachment lists the articles contained in the Bulletin. In particular, this edition of the Bulletin contains APRA's new Vision, Mission Statement and Statement of Values.

Superannuation articles in the Bulletin analyse the Pooled Superannuation Trust (or PST) market (the major part of the wholesale managed funds market regulated by APRA), examine where the growth in member contributions is coming from, as well as present a preliminary analysis of large funds direct investment management expenses.

A further article examines the use of external investment managers by the general insurance industry and contrasts this to their use by life companies and superannuation funds.

Other attachments to this statement include the Superannuation survey highlights  September 1998, which provides additional information on the manner of investment and asset allocation of superannuation; while Superannuation industry at a glance provides a snapshot of the current structure of the superannuation industry.

Further information :

Tony Nichols
Insurance & Superannuation Research Unit
APRA

(02) 6213 5378