Superannuation boom time continues

APRA/insurance/superannuation-funds/cent/superannuation-industry/chief-executive-officer/ASFA/government/

13 October 1999
| By Stuart Engel |

Superannuation assets grew 14 per cent in the 1998/99 financial year, with industry and retail fund assets the fastest growing market segments, according to the latest APRA figures.

Superannuation assets grew 14 per cent in the 1998/99 financial year, with industry and retail fund assets the fastest growing market segments, according to the latest APRA figures.

Total superannuation assets stood at $408.6 billion at June 30, according to the re-cently released APRA Insurance and Superannuation Trends report.

Superannuation funds grew 5.4 per cent in the three months to June 30 and 14 per cent for the year to June 30.

Assistant Treasurer Senator Rod Kemp says superannuation assets are at a record high.

"This is a fantastic figure and shows that Australians are demonstrating continued confidence in the superannuation industry," Kemp says.

The Association of Superannuation Funds of Australia chief executive officer Philippa Smith welcomed the new figures.

“The combination of compulsory employer contributions and strong investment re-turns has boosted the retirement savings of Australians to unprecedented levels,” she says.

The report shows that superannuation growth in the quarter was considerably in-creased by one-off exceptional employer contributions by three public sector super funds, totalling about $8.4 billion.

ASFA backed the Governments’ paying of the liability saying the money “is now be-ing invested, rather than growing further as a Government liability”.

The June quarter trends also showed that contributions rose by 101.3 per cent in the June 1999 quarter over the June 1998 quarter, while member contributions increased by 24 per cent over the previous year to $16.1 billion.

Self-managed or do-it-yourself funds, industry funds and retail fund assets were the fastest growing market segments during 1998/99, all growing by 23 per cent. Corpo-rate fund assets grew by only 8.0 per cent during the year, while public sector fund assets grew by 20 per cent.

Table: Superannuation June 30

Fund type Funds under management ($b) market share (%)

Corporate 70 17

Industry 30 7

Public sector 95 22

Retail 111 27

DIY 52 13

Source: APRA

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS