Industry and DIY funds drive super growth
Strong growth by self managed super funds and industry funds helped boost Australian superan-nuation assets by 16.6 per cent in 1999, according to the latest Australian Prudential Regulation Authority (APRA) figures.
Strong growth by self managed super funds and industry funds helped boost Australian superan-nuation assets by 16.6 per cent in 1999, according to the latest Australian Prudential Regulation Authority (APRA) figures.
The latest stats show the nation's superannuation assets reached $438.7 billion at the end of last year after growing 5.4 per cent in the last three months of the year.
According to APRA, there are now more than 20 million superannuation accounts in Australia over five different sectors.
Both self managed and industry funds grew 25 per cent for the year. Self managed funds now have $59 billion under management while industry funds have $32.9 billion. Public sector funds grew 23 per cent over the year to $102.3 billion while retail funds were not far behind growing 22 per cent to $123.4 billion. Corporate funds brought up the rear with 11 per cent growth to $73.6 billion.
Federal Assistant Treasurer Rod Kemp says he was pleased to see such strong growth in what he called “micro” funds (self managed super funds).
"It is particularly pleasing to see the continuing strong growth of funds with less than five mem-bers," Senator Kemp says.
He says this sector is likely to grow further as a result of government commitment to give em-ployees greater choice over where they can invest their superannuation.
More than three quarters (78 per cent) of the growth in funds under management came by the way of investment returns. Only 22 per cent came from increased contributions. Even so, contri-butions were up 39 per cent in the year to $50.7 billion. Member contributions rose 24.5 per cent to $17.9 billion while employer contributions were up 48 per cent to $32.8 billion.
The assets of superannuation funds have nearly doubled from $250 billion to $438 billion since March 1996.
Shares remains to be the dominant asset class for super funds. About 40 per cent of funds are invested in Australian equities or unit trusts compared to 21 per cent for fixed interest invest-ments. The amount invested overseas increased last year to make up nearly one fifth of total funds under management ($84 billion).
According to APRA, the statistics show that the bulk of new investments by super funds are being made in overseas markets.
Where superannuation money is invested
Funds under management Growth 1999 (%) Members (‘000s)
($billion)
Retail 123 22 9886
Public Sector 102 23 2677
Corporate 74 11 1389
Self managed 59 25 393
Industry 33 25 6184
Source: APRA
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