Retail non-superannuation investments is projected to increase at 9.7 per cent per annum over the next decade thanks to an expected outflow of funds from super as a result of the 2016/17 Budget super changes, according to DEXX&R.
The research house’s latest report found that retail funds under management/administration (FUM/A) was projected to increase from $200 billion at December 2016 to $504 billion at December 2026.
It said this increase would be a result of the November 2016 super changes and the redirection after July 2017 of discretionary contributions that would have previously flowed into self-managed super funds (SMSFs), and to a lesser extend into personal super products.
“Retail investment segment master fund and wrap platforms are projected to be the major beneficiaries of the increase in inflows,” the report said.
Total super accumulation FUM/A was projected to grow at 6.3 per cent to $2.82 trillion at December 2026.
Within super, industry fund accumulation accounts were projected to increase to $913 billion in 2026 and account for 37 per cent of total assets in 2026, up from 34 per cent in 2016, employer super would account for 13 per cent of total assets in 2026 (up two per cent) and hold $329 billion, and personal super would account for 16 per cent (up one per cent) to hold $329 billion of total assets.
SMSF accumulation accounts were projected to hold $236 billion in FUM, and account for nine per cent of total assets in 2026, down from 14 per cent in 2016.
DEXX&R expected the retirement incomes market FUM to grow at an annual rate of 5.9 per cent to $1.37 trillion.