POWERED BY MOMENTUM MEDIA
SMSF growth continues apace
Self-managed superannuation funds (SMSFs) have been confirmed as the fastest growing segment of the superannuation industry over the past decade alongside a decline in the number of funds regulated by the Australian Prudential Regulation Authority (APRA).
APRA's latest annual bulletin covering the superannuation industry for the period up until 30 June, last year, has revealed an industry still exhibiting steady growth with total superannuation industry assets standing at $2.1 trillion.
It said that, of this, $1,292.2 billion were held by APRA-regulated superannuation entities and $621.7 billion were held by self-managed superannuation funds (SMSFs), which are regulated by the Australian Taxation Office (ATO).
The remaining $185.5 billion comprised exempt public sector superannuation schemes ($132.2 billion) and the balance of life office statutory funds ($53.3 billion).
The APRA bulletin noted that over the 10 years from June 2006 to June 2016, the number of SMSFs grew by 86.8 per cent from 309,088 to 577,236, and the number of APRA-regulated funds decreased by 67 per cent from 7,039 to 2,324.
It said the decrease in the number of APRA-regulated funds consisted of 413 APRA-regulated funds with more than four members and 4,238 small APRA funds.
However, the degree to which the decline in APRA-regulated funds represented fund consolidation was reflected in the fact over the 10 year period, total superannuation industry assets increased by 132.1 per cent from $0.9 trillion to $2.1 trillion with APRA-regulated assets increasing by 126.7 per cent from $570.1 billion to $1,292.2 billion and SMSF assets increasing by 206.0 per cent from $203.2 billion to $621.7 billion.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
