REST Superannuation and the Australian Retirement Fund (ARF) currently appear to be running neck-and-neck in the race for the title of Australia’s largest industry fund in terms of assets.
By the middle of March, the assets of both had topped $4 billion, each accounting for roughly eight per cent of total assets held by Australian industry funds. Both also had funds under management of around $3.6 billion by the end of June 2001.
According to data provided by Rainmaker Information, ARF and REST are followed by CBUS, Hesta, Superannuation Trust of Australia, Health Super, SunSuper, Local Authorities Superannuation Fund, COSAF Superannuation and HOST-PLUS when it comes to asset size.
These funds are Australia’s Top 10 largest industry funds and account for around $28.6 billion in assets, making up 59.2 per cent of the $48.3 billion in total assets held by the industry funds in our survey. On average, the funds surveyed had assets of $483 million.
When it comes to the number of total members, however, REST outshines the rest. With a whopping 1.2 million members, it is four times the size of its closest rival, ARF, which has 517,000 members.
The Top 10 largest industry funds cornered 64.4 per cent of total industry fund members in our survey. REST alone accounts for about 16 per cent of the almost 7 million members of industry funds in Australia.
REST also leads the pack when it comes to the number of active members (see table below). Its 666,000 members account for more than one-fifth of all the active members in the Top 10 largest industry funds.
According to REST administration manager Damian Hill, the fund’s colossal size can be attributed to the unique structure of the retail industry it serves. Its members work in all kinds of outlets, from take outs, bars and pharmacies to hair and beauty salons and the hospitality industry.
Many are also employees of large super market chains who don’t belong to the corporate funds, which are usually restricted to management.
“This is a common industry for people to get their first jobs in. We pick up lots of school age and people who support themselves while at university. Besides, the retail industry is also the largest employer in Australia,” says Hill.
