Superannuation assets increased 6.2 per cent to $2.9 trillion over the year to 30 June 2019 with the industry’s largest weighting towards international listed equities, according to Australian Prudential Regulation Authority (APRA) statistics.
Of which, MySuper products reached $755.9 billion over the same period, up 11.6 per cent, APRA’s latest ‘Quarterly superannuation performance statistics’ report found.
Self-managed superannuation fund assets rose 1.7 per cent to $747.6 billion.
Source: APRA
The report noted that over the June quarter APRA-regulated assets increased 4.3 per cent to $2.1 trillion.
While equities dominated allocation at 50.9 per cent ($1.8 trillion) – it was international listed equities that had the largest weighting at 24.4 per cent compared to Australian listed equities at 22.4 per cent, and four per cent for unlisted equities.
Fixed income and cash investments accounted for 31.4 per cent of investments with 21.6 per cent for fixed income and 9.8 per cent in cash. Property and infrastructure accounted for 14.2 per cent of investments while other assets including hedge funds and commodities accounted for 3.6 per cent.
Source: APRA
The report found the annual industry-wide rate of return for entities with more than four members for the year ending June 2019 was 7.3 per cent, and 7.3 per cent for the five-year average annualised.
There is a need for Australia’s superannuation funds to simplify their investment menus, according to the firm, given over a third of funds have more than 30 options, of which one or more are “arguably subscale”.
The research house is set to offer research ratings of superannuation funds for the first time amid growing demand from financial advisers.
Treasury is calling for submissions on its draft regulations in relation to the calculation of the proposed Division 296 tax.
Initially intended to offer a “simple, cost-effective” option for Aussies invested in default fund options, a super consultant has weighed in on what the scheme has actually done for members.
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