APRA data confirms flows

The level of superannuation draw-downs has emerged as a factor in the latest Australian Prudential Regulation Authority (APRA) data which has revealed that outward benefit transfers exceeded inward benefit transfers by $0.7 billion in the December quarter, last year.

The APRA data, released today, revealed there were $27.3 billion of contributions in the December quarter, up 5.3 per cent with total contributions for the 2018 calendar year reaching $112.3 billion.

It said there were $18.2 billion in total benefit payments in the December 2018 quarter, an increase of 9.6 per cent from the December 2017 quarter ($16.6 billion) and that total benefit payments for the year ending December 2018 were $73.6 billion.

The data showed pension benefit payments ($9.2 billion) were 50.3 per cent and lump sum benefit payments ($9.1 billion) were 49.7 per cent of total benefit payments in the December 2018 quarter.

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“For the year ending December 2018, pension payments ($37.9 billion) were 51.5 per cent and lump sum benefit payments ($35.7 billion) were 48.5 per cent of total benefit payments,” it said.

The APRA data analysis said the annual industry-wide rate of return for entities with more than four members or the calendar year was 0.2 per cent, with the five-ear average annualised rate of return was 5.9 per cent.

“Over the December 2018 quarter, total assets decreased by 4.0 per cent (or $77.7 billion) to $1.9 trillion,” it said.

“As at the end of the December 2018 quarter, 49.4 per cent of the $1.7 trillion investments were invested in equities, with 23.4 per cent in international listed equities, 21.7 per cent in Australian listed equities and 4.2 per cent in unlisted equities.”

“Fixed income and cash investments accounted for 32.3 per cent of investments, with 22.0 per cent in fixed income and 10.3 per cent in cash. Property and infrastructure accounted for 14.4 per cent of investments and 3.9 per cent were invested in other assets, including hedge funds and commodities.”