Small superannuation funds, including self-managed arrangements, continue to make up the fastest-growing segment of the Australian superannuation industry, according to the latest statistics released by the Australian Prudential Regulation Authority (APRA).
The APRA data shows that while all segments of the superannuation industry continued to grow during the September quarter of last year, the small funds sector registered the fastest growth at 4.8 per cent and assets building to total $143 billion.
Total superannuation assets increased by 2.8 per cent during the September quarter to stand at $648.9 billion.
The second fastest growing sector was industry funds, where assets growing by 4.6 per cent to total $75.2 billion, while retail funds and public sector funds grew by a much more modest 1.9 per cent.
The APRA data also suggests that the Government’s new co-contribution regime has had a positive beneficial impact, with member contributions up 17.6 per cent over the quarter.
Despite the rapid growth in the small funds sector, the retail sector continues to dominate, boasting 33 per cent of total assets or 214.9 billion, compared to the 22 per cent ($143 billion) held by small funds, and 19.1 per cent ($129 billion) held by public sector funds.
Corporate funds account for 11.6 per cent of total superannuation assets ($75.2 billion), while industry funds account for 9.1 per cent ($59.3 billion).
The strength in the Australian share market was also reflected in the APRA data which showed that equities and units in trusts showed the largest rate of increase, growing by 5.2 per cent over the quarter, with cash and deposits increasing by just 3.8 per cent.
However, the data also showed that assets placed with investment managers registered the highest growth during the quarter, rising by 5.2 per cent, while assets invested through statutory funds of life offices increased by 1.5 per cent and directly invested assets increased by 1.2 per cent.
According to the APRA data, total contributions to superannuation in the September quarter increased were $15.8 billion — an increase of 18.4 per cent over the same period in 2003, with total contributions for the year to September last year being $60.9 billion — an 11.7 per cent increase over the September quarter, 2003.
