Statistics issued October 2014
Download: Superannuation Statistics
Average investment returns for superannuation funds
In the October 2014 issue of Superfunds magazine information on fund investment returns over various periods to 30 June 2014 was published. This information is included in the most recent update of the Superannuation Statistics.
The data indicate that five year superannuation fund investment returns have bounced back after the Global Financial Crisis, reaching an average 12.8 per cent return in 2013-14. The average annual return over the five years to 30 June 2014 was 9.7 per cent. Over a 20 year period the average annual return was 7.4 per cent, well above the average increase in the CPI of 4.6 per cent over that period.
June Quarter 2014 statistics issued by APRA
Another good quarter, with positive investment earnings and contributions well up on the quarter a year earlier (and well up on the March quarter as June quarter end of financial year contributions are traditionally strong). Benefit payments are up as well reflecting a maturing system.
Net rollovers from APRA funds (basically to SMSFs) continue at a level somewhat lower than in the past few years.
More details follow:
Superannuation assets totalled $1.85 trillion at the end of the June 2014 quarter.
Over the 12 months to June 2014 there was a 15.3 per cent increase in total superannuation assets.
Over the June 2014 quarter, total superannuation assets increased by 2.6 per cent.
Entities with at least $50 million in assets
The analysis and comments below are based on superannuation entities with more than four members and with at least $50 million in assets as at the end of their previous year of income.
Contributions, rollovers and benefit payments
There were $27.6 billion of contributions in the June 2014 quarter, up 5.9 per cent from the June 2013 quarter ($26.1 billion). Total contributions for the year ending June 2014 were $95.0 billion.
Outward rollovers exceeded inward rollovers by $531 million in the June quarter. Rollovers to SMSFs in 2013-14 were $2.3 billion, well down on the $7.4 billion the previous year.
There were $14.7 billion in total benefit payments in the June 2014 quarter, an increase of 8.3 per cent from the June 2013 quarter ($13.6 billion). Total benefit payments for the year ending June 2014 were $55.3 billion.
The annual industry-wide rate of return (ROR) derived by APRA for entities with over $50 million in assets for the year ending 30 June 2014 was 11.6 per cent. This derived figure is a shade lower than what rating agencies have indicated was the result for balanced funds in the financial year 2013-14.