Total superannuation assets were $3.3 trillion at the end of the September 2022 quarter, a quarterly decrease of 0.5 per cent and an annual decrease of 3.2 per cent respectively.
For the year ending September 2022, the number of MySuper products has reduced from 80 to 69 reflecting recent consolidation activities in the industry .
The commentary below relates to funds with more than six members.
For the year ending September 2022, Superannuation Guarantee (SG) contributions ($85.1 billion) accounted for around three quarters of employer contributions on the back of historically low unemployment and legislated increase to the SG contribution rate.
Member contributions have been strong, totalling $11.3 billion for the quarter and $39.2 billion for the year ending September 2022, a 17.1 per cent increase over the year compared to September 2021. The main driver of this has been personal member contributions which continues to remain above historical trends in September 2022, but has reduced from $12.9 billion last quarter to $10.4 billion this quarter. Benefit payments totalled $23.7 billion for the quarter and $88.2 billion for the year ending September 2022, a 7.8 per cent increase over the year compared to September 2021.
The rate of return (ROR) for entities with more than six members for the September 2022 quarter was -0.7 per cent and for the year was -6.4 per cent, a significant decrease compared with the annual ROR for September 2021 (16.9 per cent). This is the third consecutive quarter of negative quarterly ROR, as investment markets have suffered losses predominantly due to tightening monetary policy by many central banks globally, continuing uncertainty largely related to the conflict in Ukraine, pressures from disrupted supply chains and weaker outlook for global growth. The five year average annualised ROR was 4.8 per cent, down from 7.8 per cent in September 2021.
Over the September 2022 quarter, total assets for entities with more than six members decreased by 0.3 per cent (or $6.4 billion) to $2.4 trillion. With over $2.1 trillion in investments, 52.4 per cent were investments in equities (21.7 per cent in Australian listed equities; 25.4 per cent in international listed equities; and 5.3 per cent in unlisted equities). Fixed income and cash investments accounted for 29.1 per cent of total investments (19.0 per cent in fixed income and 10.1 per cent in cash). Property and infrastructure accounted for 16.1 per cent of total investments whilst other assets, including hedge funds and commodities, accounted for 2.3 per cent.