The Australian Prudential Regulation Authority (APRA) today released its Annual Superannuation Bulletin for the financial year to 30 June 2010. Total superannuation assets increased during the year by $150.0 billion, or 13.9 per cent, to $1.23 trillion.
Industry funds showed the largest growth during the year to 30 June 2010, with assets increasing by 17.9 per cent to $226.2 billion. Small funds, which include self managed super funds (SMSFs), single-member approved deposit funds and small APRA funds’ increased by 16.9 per cent to $392.9 billion, public sector funds’ by 13.8 per cent to $172.9 billion, retail funds’ by 11.2 per cent to $339.5 billion and corporate funds’ by 2.2 per cent to $56.6 billion.
In the year to 30 June 2010, the average rate of return (ROR) for large funds (more than four members) was 8.9 per cent. Public sector funds recorded an ROR of 9.8 per cent, corporate funds 8.9 per cent, retail funds 8.7 per cent and industry funds recorded 8.5 per cent.
In the ten years to 30 June 2010, the average ROR for large funds was 3.3 per cent per annum. Public sector funds recorded an ROR of 4.2 per cent per annum, corporate funds 3.9 per cent per annum, industry funds 3.9 per cent per annum and retail funds recorded 2.5 per cent per annum.
For the year to 30 June 2010, contributions to all superannuation entities totalled $107.7 billion, with employers contributing $72.0 billion and members contributing $34.3 billion. Contributions to large funds totalled $77.7 billion, of which retail funds received 34.0 per cent ($26.4 billion), industry funds 31.3 per cent ($24.4 billion), public sector funds 29.0 per cent ($22.5 billion) and corporate funds 5.7 per cent ($4.4 billion).
Total accumulation retirement benefits are estimated to be 82.4 per cent of total assets, or $655.2 billion, at 30 June 2010 (excluding small funds), with 17.6 per cent or $139.9 billion in defined benefits.
The Bulletin also includes, for the first time, features on asset exposures of superannuation funds and on gender diversity of licensed trustee boards. The feature ‘Asset exposures of superannuation funds’ examines the placement of superannuation fund investment assets by analysing the most significant asset exposure in each fund, the size of all asset exposures and asset exposures to related parties. The analysis found that funds had many large asset exposures to related parties. Related party asset exposures create the potential for conflicts of interest, which may require additional management by trustees.
The second Bulletin feature, ‘Gender diversity of trustee boards’, examines trends in gender diversity of licensed trustee boards. The analysis found there were significantly fewer women on the boards of licensed trustees than men, which is not dissimilar to the boards of the majority of entities in other APRA-regulated industries. The analysis also showed the number of licensed trustees that increased the proportion of women on their boards has risen over the past five years.
The Annual Superannuation Bulletin is available.