Blog

28 Apr, 2017

Just how large is the super industry?

By Phil La Greca

Phillip_La_Greca

Welcome to our latest review of the super industry, designed to monitor trends and highlight points of interest.

The superannuation industry is now valued at $2.199 trillion according to the latest figures from regulator APRA.

To put that into context, Australia’s GDP for 2016 was $1.410 trillion dollars and the total market capitalisation of all the companies in the ASX 200 is $1.668 trillion.

The table below shows the total amount held in superannuation since December 2015 ($b), broken down by sector.

Sector  Dec 2015  Mar 2016  Jun 2016  Sep 2016  Dec 2016 
Corporate  54.1  53.7  54.7  56.3  57.6 
Industry  445.6  446.5  466.4  481.7  500.6 
Public sector  214.8  215.7  223.9  231.8  237.5 
Retail  540.5  531.7  545.3  558.6  569.7 
SMSFs  603.8  600.6  619.8  639.4  653.8 
Other  187.6  185.8  188.5  178.1  179.3 
Total 2,046.4  2,034.0  2,098.0  2,145.9  2,198.5 

 

Looking at the various sectors comprising the total superannuation pool, the percentage breakdown is as follows, based on December ’16 APRA figures.

super-fund-sector-pool

When we look at the net rollovers for the December 2016 quarter, we see the following pattern.

Corporate super  negative $531 million 
Industry super  positive $276 million 
Public sector  negative $663 million 
Retail super  negative $577 million 
SMSFs  positive $1.596 billion 

 

This continues the trend where net rollovers to SMSFs for the 2015 calendar year totalled $7.169 billion and for the 2016 year totalled $6.773 billion.

The other area of interest is asset allocation. When we compare the APRA’s figures with the SMSFs in our Investment Patterns Survey, some interesting trends come to view.

asset-allocation

While SMSFs hold more cash, the aggregate cash and fixed interest allocation for both sectors is similar: 30.8% for SMSFs in our survey and 32.5% according to APRA.

The aggregate equities exposure is also close with our survey and APRA returning figures of 49.1% and 50.2% respectively.

In terms of other defensive assets (property and infrastructure), the difference is more significant but this can be explained due to harder accessibility to infrastructure for SMSFs.

 

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