Super Industry Intelligence: ATO regulated SMSFs continue to outpace system growth

Based on the ABS and ATO data-sets, the Australian managed funds industry represented $2.8 trillion assets at 31st March 2017. This was almost 9% higher than the same period last year. Superannuation segment still took the biggest share with asset under management of $2,196 billion, accounting for 79% as at 31 March 2017. It has doubled in size in the last 10 years.

Taking a deep dive on Australian superannuation segment, APRA regulated entities including corporate, industry, public sector, retail funds, and small superannuation funds still dominated the segment with $1,401 billion (62%) as at 31 March 2017.

ATO regulated self-managed superannuation funds followed with $675 billion, contributing 30% to the whole segment. Within APRA regulated entities, retail funds took the lead with $580 billion making up 38%, followed by industry, public sector and corporate funds with assets under management of $518 billion (34%), $372 billion (24%), and $59 billion (4%) respectively as at 31 March 2017.

Asset allocation within these APRA regulated entities has remained stable in the last 4 years with the Australian listed equity being the most popular asset class which stood at $355 billion (24%) as at 31 March 2017. International listed equity followed next with $339 billion, accounting for 23%.  

ATO regulated self-managed superannuation funds (SMSFs) increased by $16 billion (2.3%) to $675 billion from the last quarter and by $77 billion (12.8%) from Q1 2016. 

Industry Assets Double over the past decade

Based on the ABS and ATO data-sets, assets under management of Australian managed funds industry increased by $29 billion (1%) to $2,872 billion in Q1 2017. Compared to Q1 2016, the industry experienced a growth of $231 billion (8.8%). Since the GFC in 2008, the industry’s asset has been experiencing an upward trend but at a declining rate.  

Superannuation segment still took the biggest share with asset under management of $2,196 billion, accounting for 79% as at 31 March 2017. It has doubled in size in the last 10 years. In contrast, life insurance corporation has been losing its dominance, standing at $225 billion (8%) as at 31 March 2017. 

Domestic Shares still most popular by exposure

In terms of asset classes, domestic shares have been very stable and still the most popular class while bonds have been less preferable and deposition has gained more popularity. Domestic shares were at $702 billion, making up 31% of the industry.

SMSFs now 30% of the total Superannuation Assets

Taking a deep dive on Australian superannuation segment, APRA regulated entities including corporate, industry, public sector, retail funds, and small superannuation funds still dominated the segment with $1,401 billion (62%) as at 31 March 2017. ATO regulated self-managed superannuation funds followed with $675 billion, contributing 30% to the whole segment. 

Within APRA regulated entities, retail funds took the lead with $580 billion making up 38%, followed by industry, public sector and corporate funds with assets under management of $518 billion (34%), $372 billion (24%), and $59 billion (4%) respectively as at 31 March 2017. In addition, retail funds have been deteriorating in size despite accounting for the largest share while industry funds have been expanding for the last 10 years. 

Asset allocation within these APRA regulated entities has remained stable in the last 4 years with Australian listed equity being the most popular class which stood at $355 billion (24%) as at 31 March 2017. Internationally listed equity followed next with $339 billion, accounting for 23%.

SMSFs Growth faster than system growth

ATO regulated self-managed superannuation funds (SMSFs) increased from $16 billion (2.3%) to $675 billion from the last quarter and by $77 billion (12.8%) in Q1 2016. 

Over the last 5 years, domestic listed shares were still the most popular class for allocation of these SMSFs, followed by cash and terms deposits. The former’s asset under management remained very stable at $208 billion making up 31%. In contrast, the latter experienced a gradual decrease, ending the period at $157 billion (23%).

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