POWERED BY MOMENTUM MEDIA
Super balances hit by market headwinds
The Australian Prudential Regulation Authority (APRA) has published its Quarterly Superannuation Performance data, reporting a 3% year-on-year decline in the total value of superannuation assets to $3.4 trillion, down from $3.5 trillion.
The value of APRA-regulated assets fell 2.9%, from $2.36 trillion to $2.3 trillion, with assets in MySuper products declining 3.1% from $946.8 million to $917.3 billion.
APRA also reported a contraction in the total value of assets managed by self-managed super funds (SMSFs), down 2.4% from $901.8 billion to $880.6 billion.
Exempt public sector superannuation schemes experienced the sharpest contraction, plunging 6.8%, from $166.6 billion to $155.2 billion.
APRA said the broad-scale contraction in the value of super assets was a reflection of “volatility in financial markets” off the back of aggressive monetary policy tightening from the Reserve Bank of Australia (RBA) and its peers around the world, aimed at curbing inflation.
Subdued market-driven asset growth was offset by an 11% increase in super contributions, which totalled $154.4 billion over the year.
Employer contributions increased 11.8% to $114.9 billion over the same period., which APRA noted was supported by the increase to the Superannuation Guarantee to 10.5 per cent per annum from 1 July 2022 and record-low unemployment.
Member contributions also increased, albeit less pronounced, up by 8.6% over the year to $39.5 billion.
As at 31 December 2022, benefit payments totalled $91.6 billion, representing an increase of 11.3% from the previous corresponding period.
Lump sum payments totalled $50.2 billion (up 17.6%) and pension payments totalled $41.3 billion (up 4.5%).
According to APRA, both increases were “in-line with longer term trends” as a result of a “maturing superannuation system and ageing population”.
AUTHOR
Charbel Kadib
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
