Super assets plunge as sharemarkets remain negative
Thetotal value of Australia’s superannuation assets has declined for the second consecutive quarter, as the ongoing uncertainty in the world’s investment markets continues to bite into Australia’s retirement savings.
Figures recently released by theAustralian Prudential Regulation Authority (APRA)show total superannuation assets fell by 2.7 per cent in the September quarter of last year to stand at $505.7 billion.
The decline came on top of a 2.8 per cent fall in superannuation assets in the June quarter last year.
The fall came despite a 1.5 per cent increase — from $50.7 billion to $51.4 billion — in the total contributions to super funds over the September quarter, suggesting poor investment returns are eating away at superannuation savings.
Earlier this month, a report by consulting groupInTechlabelled 2002 the worst calendar year for super fund returns in over 25 years, with the average fund losing 7.3 per cent over the 12-month period.
The head of statistics at APRA, Steve Davies, says while the decline in superannuation assets was not yet a cause for alarm, it does raise some questions for the superannuation industry.
The standout in the superannuation industry was the self-managed super funds sector, which overcame the overall negative trend in superannuation assets to grow by 16 per cent in the year to September 2002.
AUTHOR
George Liondis
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