Assets in MySuper products jump 19 per cent

Total assets in superannuation were up 10.1 per cent in the December 2017 quarter compared to December 2016’s, with assets in MySuper products jumping 19 per cent in that time period, according to statistics released today by the Australian Prudential Regulation Authority (ARPA).

The Authority’s Quarterly Superannuation Performance and Quarterly MySuper Statistics reports showed that, across the two quarters, all other key groups in the superannuation industry also experienced jumps in investments.

Total APRA-regulated assets grew 11.2 per cent to $1,698.6 billion, balance of life office statutory fund assets increased 11.9 per cent and exempt public sector super scheme assets were up 9.8 per cent.

Self-managed superannuation funds (SMSFs) experienced the least growth, increasing by 7.5 per cent.

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It was unsurprising that total assets in MySuper products recorded the highest growth, going from $533.7 billion in the December 2016 quarter to $635.2 billion in the 2017 equivalent, considering the heavy push from APRA to swap to MySuper products.

As the exodus from common default products to MySuper should now have run its course, this would most likely be its last period of exceptional growth.

Graph: MySuper products and accrued default amounts

Payments in and out of entities with more than four members for the year ending 31 December 2017 was also higher than in 2016, according to APRA’s statistics.

Net contribution flows grew 20.7 per cent to $37.3 billion across the two years, with total contributions and total benefit payments jumping 12.4 and 10.6 per cent respectively.