Small funds sustain super growth
By Rebecca Evans
Small superannuation funds increased the most during the March 2004 quarter, contributing to an overall sector increase of 3.6 per cent and taking total superannuation assets to $596 billion.
According to the latest statistics from the Australian Prudential Regulation Authority (APRA), all fund types grew over the quarter but small funds with less than five members stood out again as the fasting growing area.
The $135.6 billion invested in small superannuation funds at the end of the March quarter marked an increase of 6.3 per cent, slightly down on the 8.1 per cent growth experienced by the small fund sector during the December 2003 quarter.
The next strongest performers over the March quarter were industry superannuation funds, which grew by 5.9 per cent to pip retail funds, which expanded by 4.4 per cent, public sector funds (3.5 per cent) and corporate funds, which experienced a 2.6 per cent increase in assets.
Retail funds retained the largest share of total superannuation assets at 33.7 per cent, followed by small super funds with 22.8 per cent.
For investment classes, assets in cash and deposits showed the largest rate of increase, growing by 6 per cent over the quarter.
Contributions to superannuation increased by 15.8 per cent over the year to March to $60.1 billion, with employers contributing $38 billion and member contributions totalling $22.1 billion.
Meanwhile, lump sum payments dropped by 18.3 per cent over the year, but pension payments rose by 5.6 per cent.
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