ISA claims vindication from APRA data

Industry Super Australia (ISA) has sought to use the latest Australian Prudential Regulation Authority (APRA) superannuation data to suggest that Australians are shifting to industry superannuation funds.

The ISA issued a statement this week arguing that the APRA data had confirmed that growth in industry fund assets had eclipsed that of retail funds during the quarter and that this was caused by a surge in benefit inflows.

“In the year to June 2018, industry super funds received inward benefit transfers of $32.5 billion compared to $12.5 billion just three years ago,” it said. “The sheer scale of these transfers is significant – last year they exceeded the total employer Superannuation Guarantee contributions received by the six million industry super fund members.”

The ISA said that after allowing for outflows, net benefit transfers were $11.3 billion last year compared to regular net outward transfers in preceding years.

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The industry funds body said the APRA data had also confirmed superior investment performance was powering industry funds’ growth with $52.8 billion in net returns earned for members in the year to June 2018 – a net return of 9.8 per cent which was 2.4 per cent greater than the retail sector.

Commenting on the data, ISA incoming chief executive, Bernie Dean said the continued outperformance showed it was never too late to consider an industry fund.