Super trends towards industry funds
The impending choice regime has had little impact on the prosperity of the $71.9 billion industry fund market which reaped the strongest inflows in the superannuation sector over the June quarter, posting growth of 8.5 per cent.
All fund types showed an increase in assets over the June quarter, with total superannuation assets rising by 4.6 per cent to reach $625.2 billion, according to the latest statistics released by the Australian Prudential Regulation Authority (APRA)
Employers chipped in $37.8 billion for their employees during the year to June, with members adding $19.9 billion.
Total superannuation contributions for this period stand at $57.7 billion, almost an 8 per cent improvement on the same period last year.
Benefit payments has fallen by 10.7 per cent compared to the June quarter 2003, with members opting against withdrawing their superannuation in lump sums, with these payments declining by 15.7 per cent, whilst pension payment have risen by 7.0 per cent.
For fund classes, small funds continue to perform well, posting 6 per cent growth in the quarter, but retail funds still dominate market share, holding 33.7 per cent of total superannuation assets.
Public sector funds and retail funds grew by 5.7 and 5 per cent respectively, while corporate superannuation posted a modest rise of 3.3 per cent.
For investment classes, cash and deposits showed the strongest growth, with assets increasing by 7.1 per cent over the quarter.
These were followed by equities and units in trusts, which increased by 5.6 per cent.
Assets invested directly also grew by 5.6 per cent while assets with investment managers and in life office statutory funds increased by 5.2 per cent and 2.4 per cent respectively.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
