Self-managed super fund numbers jump 7% in a year

Total superannuation assets increased by 11.5% during the year to June 30, 2011 to $1.34 trillion, according to the Australian Prudential Regulation Authority.

Of this $810 billion is held by APRA-regulated superannuation entities and $407.6 billion are held by self-managed superannuation funds (SMSFs), which are regulated by the ATO.

The remaining $117 billion comprises exempt public sector superannuation schemes ($80 billion) and the balance of life office statutory funds ($36 billion).

The number of SMSFs grew by 7.2% to 442,528 funds during the 2011 financial year, according to the latest APRA report.

Of the total assets held by entities with more than four members, 42% of assets ($376 billion) were held in the default investment strategy.

Industry funds held 64% of assets in the default investment strategy, followed by corporate funds with 53%, public sector with 51% and retail funds with 20%.

At June 30, 2011, the majority of default strategy assets were held in equities: 28.8% in Australian shares and 23.5% in international shares.

A further 13.5% were held in other assets, 10% in Australian fixed interest, 9.5% in property, 8.4% in cash and 6.2% in international fixed interest.

Of entities with more than four members, 68% offered investment choice to their members.

Retail funds offered the greatest number of investment choices to members, with an average of 255 options per fund.

Industry funds offered an average of 10 investment options per fund, public sector funds offered an average of nine investment options per fund and corporate funds offered an average of six investment choices per fund.

It noted over the 15 years to June 2011, the average rate of return for the superannuation industry was 5.2% per annum and when adjusted for the 2.7% per annum inflation provided a real return of 2.5% a year.