MySuper assets approach $1tn as funds consolidate

APRA Superannuation mysuper SMSFs

1 February 2024
| By Laura Dew |
image
image
expand image

Total MySuper assets are approaching $1 trillion, representing 40 per cent of assets held by APRA-regulated superannuation entities (RSEs). 

In the annual APRA superannuation bulletin for FY202223, it said MySuper products have $995.3 billion in assets under management as of 30 June 2023 divided between 50 products. 

This is up from $881 billion a year ago, a rise of 12.9 per cent. 

Around half of the MySuper products have a life cycle strategy with $360 billion in total assets. 

The number of MySuper accounts rose from 14.2 million a year ago to 14.9 million, and they accounted for 65 per cent of total member accounts among entities with more than six members. 

Fees paid in relation to MySuper products totalled $3.5 billion for the year, with 85.7 per cent of fees paid to members and the remainder paid from reserves. Some $1.8 billion was for administration and $1.7 billion was for investment fees. 

The average MySuper member balance was $63,976.

Overall total superannuation industry assets were $3.6 trillion, with 69 per cent held by RSEs and $0.9 trillion held by self-managed superannuation funds (SMSFs). The remainder is held by exempt public sector superannuation schemes and the balance of life office statutory funds. 

At 30 June 2023, there were 78 APRA-regulated RSE licensees responsible for managing 111 funds with more than six members. These funds had 22.3 million member accounts.

For funds with more than six members, the number of member accounts increased by 3.4 per cent to 23 million, and there was an average member balance of $111,380. 

This is partly due to mergers with numerous superannuation funds opting to consolidate, in some cases prompted by APRA after underperformance. This includes QSuper and Sunsuper to form Australian Retirement Trust, CareSuper and Spirit Super, and Hostplus and Statewide Super. 

Over five years the number of member accounts had decreased by 13.6 per cent from 26.7 million in June 2018 as a result of the transfer of balances in inactive, low-balance accounts to the Australian Taxation Office. 

In the same period, the number of APRA-regulated funds declined by 31.5 per cent from 1,993 to 1,365, while the number of funds with more than six members declined from 188 to 111, a fall of 40 per cent. 

In contrast, the number of SMSFs rose by 9.6 per cent from 557,075 in June 2018 to 610,287.
 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

JohnM

Why would you do that for? It would be a case of the same circus, different clowns....

6 hours ago
Noah Elshin

So much value destruction. And where is Board accountability? Will John Abernethy ever go to save the company?...

2 days 4 hours ago
Shareholder

Get rid of the rest of the old guard to clean up the culture, then you might have a chance....

6 days 2 hours ago

Insignia Financial has unveiled a new operating model and executive team, including a new head of advice, while three senior executives are set to depart the licensee....

1 week ago

ASIC has obtained interim orders from the Federal Court to freeze the assets of a registered managed fund and prevent its former director from leaving Australia. ...

4 weeks ago

The $280 billion Australian Retirement Trust is the first superannuation fund off the block to report its performance for the 2023-24 financial year....

2 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND