SMSFs outpace APRA funds with 12% growth
More than $890 million in assets mean SMSFs account for 26 per cent of all super.
SMSF assets have raced ahead of APRA funds with 12 per cent growth against 9.6 per cent for the year to the end of March, according to the latest figures.
The increase means SMSFs now manage $892 million in assets – up from $796.1 billion at the end of March 2021 – equivalent to 25.9 per cent of total super funds.
This is counter to previous suggestions by the SMSF Association chief executive John Maroney, who said: “I think it’s more likely that we will decline somewhat in percentage terms over the next 10 years, mainly via demographics.”
The quarterly superannuation performance figures also show APRA-regulated funds rising from $2,131.9 billion to $2,337.2 billion over the same period.
The growth of the SMSFs comes as total superannuation assets increased 9.7 per cent to $3.4 trillion. APRA said the growth came down to fiscal stimulus during COVID.
APRA said contributions to its funds rose 16.9 per cent and attributed this to the increase in household savings during the pandemic.
But the authority did say contributions were beginning to revert to long-term trends and weaker investment performance, due to concerns over increased interest rates and rising inflation as well as the doubt brought by the conflict in Ukraine.
Josh Needs is a journalist at Accountants Daily and SMSF Adviser, which are the leading sources of news, strategy, and educational content for professionals in the accounting and SMSF sectors.
Josh studied journalism at the University of NSW and previously wrote news, feature articles and video reviews for Unsealed 4x4, a specialist offroad motoring website. Since joining the Momentum Media Team in 2022, Josh has written for Accountants Daily and SMSF Adviser.