Australia’s Flourishing Superannuation Fund Industry Surpasses AUD 1.5 Trillion

publicfundmonitor_exploringAustralia’s expanding superannuation fund industry has attracted a mob of global asset management firms wanting to manage those retirement assets. The battle for superannuation market share is intense as companies have invested resources setting up offices in Australia. In Australia, superannuation delivers retirement income streams for individuals.

How large is Australia’s superannuation market?
Australia is the fourth biggest pool of superannuation savings globally. Moving up the ranks, the superannuation market is behind the United States, Japan and the United Kingdom – slightly ahead of Canada. Australia’s superannuation fund assets in aggregate are approaching A$ 1.6 trillion, expectations with increased contributions and investment returns may grow assets by 1.5x to 2x in a decade. One major change is the compulsory superannuation going from 9% to 12%. Some reasons for the increase include higher lifestyle expectations for Australians, growth in life expectancy and adequate public support for the increase.

June 2012 – Superannuation Total Assets

AUD in Billions Jun 2006 Jun 2007 Jun 2008 Jun 2009 Jun 2010 Jun 2011 Jun 2012
Corporate 52.1 69.1 59.7 55.4 56.4 58.5 56.1
Industry 150.3 197.4 201.3 191.8 226.1 250.7 267.3
Public Sector 152.7 177.6 170.6 151.9 172.9 210.6 222.7
Retail 299 369.9 337.1 305.4 339.5 368.2 371.4
Small 206.7 315.9 324 328.2 368.2 425.3 440.9
Subtotal 860.8 1129.9 1092.6 1032.7 1163 1313.3 1358.3
Pooled Superannuation Trusts 58.9 83.6 78.6 69.7 79.2 86.8 87.6
Balance of Life Office Statutory Funds 43.4 42.9 38.4 34.7 35.5 37.6 42.2
Total 904.2 1172.8 1131 1067.4 1198.5 1350.9 1400.5

Source: Australian Prudential Regulation Authority – June 2012 Data

Nearly A$ 450 billion are self-managed superannuation funds (SMSF). Growth in the SMSF market has been attributed to an older and wealthier base of individual capital. As of June 30, 2012, industry and public sector funds constitute about 35% of total superannuation assets.

June 2012 – Top 20 Australian Superannuation Funds by Size[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


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