The latest APRA data on quarterly superannuation performance showed there had been an increase in contributions for the three months to June ($33.6 billion) a 17 per cent rise from the March quarter, but it was down on the year before.
Personal contributions were particularly soft, at $7.8 billion, the lowest June quarter figure since 2016.
Notably there were $37.4 billion in total benefit payments in the June quarter, a surge of 77.7 per cent from the three months before – reflecting a spike in early super lump sum payments.
While lump-sum payments totalled $26.8 billion, pension payments totalled $10.7 billion, largely in line with the previous quarter.
Quarterly net contribution flows for the industry were negative, with benefit payments outweighing the money coming in.
Superannuation assets totalled $2.9 trillion at the end of the quarter, a slight decrease of 0.6 per cent over the 12 months prior. But total assets had increased by 3.7 per cent from the prior quarter to $2.1 trillion.
Total assets in MySuper products were $731.3 billion at the end of June, a 3.3 per cent decrease over the year.
The industry-wide rate of return (ROR) for entities with more than four members for the June quarter however was 6 per cent, a recovery from the -10.3 per cent recorded in March.
The annual return to June 2020 was negative 1.1 per cent, while the five-year average annualised ROR was 5.2 per cent.
The Association of Superannuation Funds of Australia (ASFA) weighed in on the average return rebounding, stating the data has reinforced the importance of preserving the legislated increase in the super guarantee next year.
At the end of the quarter, 49.2 per cent of the $1.8 trillion for funds with more than four members was invested in equities, with 24.1 per cent in international listed equities, 21 per cent in Australian listed equities and 4.1 per cent in unlisted equities.
Fixed income and cash investments accounted for 33.6 per cent of investments, with 20 per cent in fixed income and 13.6 per cent in cash.
Property and infrastructure accounted for 14.2 per cent of investments while other assets, including hedge funds and commodities, accounted for 3.1 per cent.
