Superannuation assets totalled $2.9 trillion at the end of the June 2020 quarter. Over the 12 months from June 2019 there was a 0.6 per cent reduction in total superannuation assets.
Total assets in MySuper products totalled $731 billion at the end of the June 2020 quarter. Over the 12 months from June 2019 there was a 3.3 per cent decrease in total assets in MySuper products.
The reduction in the value of assets over the year to the June quarter 2020 was due to the significant downturn in local and overseas financial markets as a result of COVID-19. However, the reduction in assets over the 12 months period was modest, reflecting investment earnings in quarters other than the March quarter 2020 and net inflows of contributions. Investment earnings were positive in the June quarter 2020 at 6.0 per cent on average for funds with more than four members, which was a partial recovery from the negative 10.3 per cent average return in the March quarter.
For APRA regulated funds:
There were $33.6 billion of contributions in the June 2020 quarter, up 17.0 per cent from the March 2020 quarter but 1.4 per cent less than in the June 2019 quarter. Total contributions for the year ending June 2020 were $120.6 billion.
There were $37.4 billion in total benefit payments in the June 2020 quarter, an increase of 77.7 per cent from the March 2020 quarter. The large increase reflects the impact of payments under the Early Release Scheme that commenced on 20 April.
Net contribution flows (contributions plus net benefit transfers less benefit payments) were a negative $2.3 billion in the June 2020 quarter, the first such negative amount since compulsory superannuation was introduced. Net contribution flows for the year ending June 2020 were $23.5 billion.
The annual industry-wide rate of return (ROR) for entities with more than four members for the year ending June 2020 was -1.1 per cent and was 6.0 per cent in the June quarter 2020. The five year average annualised ROR to June 2020 was 5.2 per cent.
As at the end of the June 2020 quarter, 49.2 per cent of the $1.8 trillion investments were invested in equities; with 21.0 per cent in Australian listed equities, 24.1 per cent in international listed equities and 4.1 per cent in unlisted equities. Fixed income and cash investments accounted for 33.6 per cent of investments; 20.0 per cent in fixed income and 13.6 per cent in cash. The cash allocation was up on 2019 levels as funds increased liquidity given the impact of the Early Release scheme.
Property and infrastructure accounted for 14.2 per cent of investments and 3.1 per cent was invested in other assets, including hedge funds and commodities.