Superannuation assets fell 0.5% in value over the 12 months to the end of June, according to the latest quarterly figures from the Australian Prudential Regulation Authority (APRA).
Following a quarterly decline of 4.4%, total superannuation assets stood at $3,312.5 billion at the end of June, down from $3,327.9 billion at the end of the same month in 2021.
According to APRA, the decline reflected the volatility in financial markets following global interest rate increases in response to high levels of inflation, constrained global supply chains and the ongoing uncertainty due to conflict in Ukraine.
Total assets in MySuper products stood at $884.5 billion at the end of June, which represented a quarterly fall of 4.7% and an annual decline of 1.9%. Total APRA-regulated assets fell 1.1% over the 12 months to $2,241 billion.
Contributions, however, saw an increase of 15.2% from the previous year, totalling $146.5 billion. APRA said this was owing to rises in both employer and member contributions “likely reflecting unemployment rates having dropped to record lows over the year”.
Employer contributions rose 10.2% over the year to total $108.6 billion, which APRA said was further supported by the increase in the Superannuation Guarantee contribution rate to 10% per year, effective from 1 July, 2021.
“Personal member contributions increased by a significant 32.7% over the year to $35.3 billion, also buoyed by the accumulation of household savings during the onset of Covid-19,” said APRA.
Australia’s industry super funds have come under fire for distorting equity markets and inflating Commonwealth Bank’s share price, with investment chiefs warning that their size and benchmark-driven behaviour are fuelling mispricing across the ASX.
The sovereign wealth fund has acquired a near-10 per cent stake in Transgrid, the operator of a high-voltage electricity network, in a move it says aligns with its risk-return objectives and long-term investment strategy.
Rest has appointed its new chief investment officer, who previously served as Qantas Super’s CEO for nearly a decade.
AustralianSuper has reinvested in Whitehaven Coal, describing the move as “an investment opportunity” aimed at creating value for its members.