POWERED BY MOMENTUM MEDIA
Total super assets nearing $3.9tn
According to new data from the Australian Prudential Regulation Authority (APRA) for the March 2024 quarter, total superannuation assets have now crossed $3.8 trillion.
This marks an 11.3 per cent rise from $3.4 trillion in March 2023 and 4.2 per cent over the quarter.
“This increase was led by strong growth in APRA-regulated funds, which increased by over 4.8 per cent over the quarter, driven by strong returns from financial markets. Of the total superannuation assets, $2.7 trillion are in APRA-regulated funds,” APRA said.
Meanwhile, total contributions increased by 11.3 per cent to $177.0 billion in the year ended March 2024.
“Of this, employer contributions were $33.5 billion for the quarter and $133.3 billion for the year ending March 2024, which was 12.4 per cent higher compared to the previous year,” APRA said.
This growth in employer contributions over the year was driven by a number of factors, including the increase in the superannuation guarantee to 11 per cent on 1 July 2023, alongside a 4.2 per cent yearly increase in the Wage Price Index, and a 2.4 per cent yearly increase in the number of people employed.
Member contributions increased to $43.7 billion, which was 8.2 per cent higher than the previous year.
Benefit payments increased to $112.9 billion in the year ended March 2024, rising 18.1 per cent. APRA said the increase is attributable to lump sum payments rising by 18.4 per cent to $63.0 billion and pension payments increasing by 17.7 per cent to $49.8 billion.
Looking at financial performance, the rate of return (ROR) for entities with more than six members for the March 2024 quarter was up from 4.3 per cent in the December 2023 quarter, rising to 4.9 per cent.
APRA said: “This high quarterly return was driven by strong growth in financial markets, notably in domestic and international equities which finished the quarter near all-time highs.
“The ROR for the year ending March 2024 was 10.9 per cent, while the five-year annualised ROR to March 2024 was 6.4 per cent.”
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
