APRA’s March 2013 Quarterly Superannuation Performance publication showed a $68.4 billion rise in the March quarter alone, a figure that also includes non-APRA regulated funds such as self-managed super funds and life office statutory funds.
Of APRA-regulated funds, the industry fund sector grew the most with a 5.7 per cent or $16.7 billion increase in March, up to $311.4 billion.
This was followed by corporate funds (up 4.3 per cent or $2.5 billion to $60.3 billion) and public sector funds, which grew by 4.3 per cent ($10.3 billion) to $247.2 billion. Retail funds were up 4.2 per cent or $16.9 billion to $415.0 billion.
The average annual rate of return (ROR) for the year ending March 2013 (for quarterly reporting funds or those with more than $50 million in assets) was 10.2 per cent.
There was little difference in RORs between super sectors, with industry funds, public sector funds and retails funds all returning 4.1 per cent in the March quarter, and corporate funds returning 4.0 per cent.
The March quarter saw $7.22 billion in net contributions, comprising $20.8 billion of contributions minus net rollovers of -$1.43 billion and $12.12 billion in total benefit payments.
Industry funds also led inflows, receiving 33.1 per cent ($6.9 billion) of total contributions, followed by public sector funds (32.7 per cent or $6.8 billion), retail funds (30.4 per cent or $6.3 billion) and corporate funds (3.8 per cent, $0.8 billion).
The Minister for Superannuation and Financial Services Bill Shorten used the new data to take a shot at the Coalition over their approach to superannuation. It highlights the value of super not just to retirees but to the national economy over the long term, he said in a statement.
“It is time the Liberal Party accepted that superannuation, a Labor creation, is now a foundation stone of a strong Australian economy and abandon plans to rip $4 billion from the retirement savings of hard working Australians,” Mr Shorten stated.
“Tony Abbott and the Liberal Party have consistently opposed the creation of superannuation, and then every increase to the compulsory superannuation contribution,” he said.
Mr Shorten suggested compulsory super would never reach 12 per cent under an Abbott government, and reiterated his objections to Coalition plans to remove the low income superannuation contribution.
“The news today that superannuation savings have reached $1.6 trillion makes Tony Abbott’s proposed cuts all the more destructive,” Mr Shorten said.
The figures were also welcomed by the Industry Super Network, which said the data “shows the enduring success of the all profits to members industry superannuation model”.
“These figures simply reinforce the long-term outperformance by industry funds,” ISN chief executive David Whiteley said in a statement.
He said the outperformance wasn’t just driven by low fees and no commissions, but had been sustained by members’ investments in infrastructure.
The new data comes as Industry SuperFunds prepares to release their Building Australia - Super Investment Initiative, according to the ISN.
