Super assets heading south of $1 trillion
The Australian superannuation industry may no longer be worth more than $1 trillion when the global financial crisis is over, with the latest Australian Prudential Regulation Authority (APRA) data for the 12 months to March revealing that the total value of assets has already slumped by 10.8 per cent to be just over $1.03 trillion.
When the value of Australian superannuation assets topped the $1 trillion mark more than two years’ ago it was regarded as a landmark, but the latest APRA data points to a continuing decline, notwithstanding the fact that returns were in positive territory during March, April and May this year.
Indeed, the only growth area for superannuation assets in the March quarter were self-managed superannuation funds, which recorded an increase of 1.8 per cent, while industry fund assets decreased by 1.4 per cent, retail fund assets by 2.6 per cent, corporate fund assets by 2.9 per cent and public sector fund assets by 3.2 per cent.
The APRA data also suggests that the market downturn has seen fewer people taking advantage of the Government’s co-contributions regime, with 82.5 per cent of contributions during the March quarter being attributable to employers, 16.4 per cent to members and just 1.1 per cent to spouse or co-contributions.
AUTHOR
Mike Taylor
Recommended for you
ASIC has banned a former AFSL director after he failed to adequately address fees-for-no-service conduct by one of his firm’s representatives.
The Financial Advice Association Australia has appointed two new board members following two weeks of voting, as well as one re-elected member.
Advice licensee Bombora has introduced a board of six financial advisers from its national network to ensure industry voices are heard collectively on future decisions.
Technology firm Iress and investment manager Challenger have formed a strategic partnership to launch an adviser solution to better serve their retiring clients.
