MySuper assets approach $1tn as funds consolidate

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

subscribe

Stay up to date with Australia’s top news and information source for the wealth management industry

MARKET INSIGHTS

sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry

Alan Tickle

I’ve been an adviser for 34 years and while I passed the FASEA exam first attempt, I felt that it failed to test techni...

4 hours 51 minutes ago
Graeme

Such a high personal cost to so many. It must be acknowledged with rather more sensitivity. It is a good thing Mr Rich...

14 hours ago
Really?

Thank you Laura, Money Management and FSCP for round 1 against some of the worst criminals in our industry but this will...

1 day ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

7 months ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

6 months 2 weeks ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

7 months ago