Superannuation By Fund Type Analysis
This post updated Oct 3 2024 - With APRA Asset Allocation data for June 2024 (Released Oct 2, 2024).
APRA published new data on super funds for the June quarter on August 29, 2024. We have combined this information with financial adviser data, population statistics from the ABS, and ATO SMSF data.
This analysis highlights key trends that could impact advisory firms, licensees, and wealth management companies. The dashboards for Members are interactive, allowing users to customise the charts.
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Key Findings (With Dashboard Numbers Referenced):
Industry Funds Just Keep Growing D2: Industry funds are growing faster than other fund types, now holding 35.1% of the market, up from 35% last quarter. In 2018, the main fund types were nearly equal at around 25%.
Retail Funds Show Better Returns D3: Retail funds trailed Industry funds this quarter, but over five years, they're now less than 1% behind, down from a 2% gap in the past.
Investment Asset Allocations D8, D9: Recent data from APRA reveals key points on asset allocation as of March:
Industry funds like to invest directly at 71.36%, up from 64.71% in December 2023, likely due to a major fund merger.
Retail funds invest only 11.88% directly.
Industry funds hold 10.97% in infrastructure assets, compared to just 3.81% for Retail funds, with most Industry holdings being unlisted.
Property holdings are similar, with Industry funds at 7.01% and Retail funds at 5.93%, but Industry funds prefer unlisted property holdings at 5.25% and retail at 1.50%.
Growing Opportunity for Advisers(D1): The total super assets per adviser have increased significantly since Q4 2018, from $88 million to $245 million in the recent quarter. Edging slowly to an increase of 300%. (currently 278%).
Net Flows (D5): Retail funds experienced their highest net inflow of $9.16 billion in over 17 years, while since 2017, they mostly saw more money leaving than entering. The June quarter is usually strong, with Industry funds totalling a net inflow of $21.06 billion.
Pension Payments Steadily Growing for Industry Funds (D6): Pension benefits for Industry funds have consistently increased, exceeding $3 billion over the last four quarters. Retail funds also maintain steady benefits, but at a higher level.
Transfers to SMSFs Show an Upward Trend (D7): Transfers to Self-Managed Super Funds (SMSFs) are rising after a slowdown during COVID-19, with Industry funds seeing a significant increase in transfers out to SMSFs, currently at the highest rolling 12-month rate of -$3.363 billion.
Fees as a Percentage of Total Assets Continue to Decline (D10): Industry funds have lower fees compared to Retail funds, with the fee gap stable in recent years; Industry funds are around 0.49% while Retail funds are also at 0.49%.
Industry Funds Continue To Increase Their Market Share
You may also wish to see our detailed analysis of SMSF Funds, which also includes an overlay of Advisers - See blog post here.
