APRA data indicates co-contribution gaining traction
The Government’s new superannuation co-contribution regime appears to be gaining real traction, with the latest Australian Prudential Regulation Authority (APRA) data pointing to a healthy 17.6 per cent lift in member contributions during the September quarter.
The APRA Superannuation Trends data for the September quarter released this week not only reveals the lift in member contributions but the continued growth of small superannuation funds, including self managed arrangements.
The APRA data shows that while all segments of the superannuation industry continued to grow during the September quarter of last year, the small funds sector registered the fastest growth at 4.8 per cent and assets building to total $143 billion.
Total superannuation assets increased by 2.8 per cent during the September quarter to stand at $648.9 billion.
The second fastest growing sector was industry funds, where assets grew by 4.6 per cent to total $75.2 billion, while retail funds and public sector funds grew by a much more modest 1.9 per cent.
Despite the rapid growth in the small funds sector, the retail sector continues to dominate, boasting 33 per cent of total assets or $214.9 billion, compared to the 22 per cent ($143 billion) held by small funds, and 19.1 per cent ($129 billion) held by public sector funds.
Corporate funds account for 11.6 per cent of total superannuation assets ($75.2 billion), while industry funds account for 9.1 per cent ($59.3 billion).
The strength in the Australian share market was also reflected in the APRA data which showed that equities and units in trusts demonstrated the largest rate of increase, growing by 5.2 per cent over the quarter, with cash and deposits increasing by just 3.8 per cent.
Recommended for you
Almost 70 per cent of asset managers are planning to control costs via product rationalisation, according to a global survey by Northern Trust, as they seek to offer clients a best-in-class experience.
Fund managers should work collaboratively with data providers to minimise greenwashing risks in their products as a positive ESG score can be a “gamechanger” for a fund’s demand with advisers.
Asset manager Janus Henderson has made two acquisitions in the ETFs and emerging markets space as it takes strategic steps to meet client needs.
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.