Super AUM bounces back in 2023 despite shaky Q3

Superannuation assets have risen 3.8 per cent to $3.7 trillion, according to the latest APRA quarterly data.

This compared to a marginal decline of 0.1 per cent over the September quarter, driven by a rise in member benefit payments as well as negative investment returns in the quarter that offset positive inflows.

The prudential regulator attributed this latest rise to strong growth in APRA-regulated funds and strong returns from financial markets.

Some $2.6 trillion was held in APRA-regulated assets, and while the body did not disclose how much of this was in MySuper products, both the June and September quarters saw 12-month growth surpassing 12 per cent.

Industry super funds held $1.27 trillion, followed by retail ones at $713 billion and public sector at $534 billion.

Corporate funds, meanwhile, made up just $47.3 billion, down from $56.5 billion last quarter.

Moreover, the rate of return (ROR) for entities with more than six members for the December quarter increased by 4.3 per cent since.

APRA said that this was driven by strong growth in financial markets, particularly equities as the ASX 300 index finished the quarter near record highs.

Looking at the full calendar year, benefits paid out reached $111.1 billion over 2023, compared with $91.43 billion in 2022. This came just shy of the record-high $112.96 billion that was paid out over a rolling 12-month period during COVID-19.

According to the prudential regulator, this 21.5 per cent increase was the result of lump sum payments rising by 26.3 per cent to $63.2 billion and pension payments increasing by 15.7 per cent to $47.9 billion.

Meanwhile, total contributions increased by 11.7 per cent to $172.6 billion in the year ended December 2023, with employer contributions increasing by 13 per cent over the year to $129.9 billion.

“The significant growth in employer contributions over the year was driven by the increase in the Superannuation Guarantee to 11 per cent and a 3 per cent increase in the number of people employed,” APRA said.

Members contributed $8.2 billion in the quarter and $42.7 billion in 2023, which was 8 per cent higher than the previous year.

On the self-managed super fund (SMSF) side, these held $913.7 billion, up 6.9 per cent from $854.6 billion at the end of 2022. However, it was a decline from the September quarter when SMSF assets were $884.6 billion.