The SMSF sector is growing by $23,200 every minute

The latest statistical report from APRA has been released (here’s a link to download it), which of course mainly focuses on the APRA-regulated superannuation funds in the retail and industry sectors.

But the APRA statistics also make passing mention of ATO-regulated funds, the SMSF sector, which from June 2018 to June 2019 grew in total assets from $735.4 billion to $747.6 billion — an increase of $12.2 billion. For a bit of fun, you can think of that equalling roughly $33.4 million each day, $1.4 million each hour, or $23,200 every minute.

The number of SMSFs over that period grew from 581,853 to 599,678 — a jump of 17,825 funds (an establishment rate of just shy of 50 new funds every day).

The overall total of superannuation assets to the end of June 2019 was $2.87 trillion, an increase of 6.1% over the year.

Of APRA-regulated funds, the statistics show that industry funds grew in assets by 13.8% over the year to June 2019, but the retail sector only managed an increase of 0.51%. The trend was shown by the prudential regulator to be particularly emphasised over the last three months of the income year, with the industry fund share of assets increasing 6% compared to a retail funds growth of 0.36%.

A year ago, APRA’s statistics had industry and retail funds much closer in terms of their control over a proportion of total retirement saving assets, with industry funds holding 23.4% and retail 23%. The 2018-19 results show those figures now standing at 25% and 21.8%.

Investments of APRA-regulated funds over the year showed 50.9% invested in shares (24.4% in international listed equities, 22.4% Australian equities, and 4% in unlisted). Fixed income accounted for 21.6% of investment, with cash at 9.8%.

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