SMSFs continue to grow reaching $22 billion

Self-managed super funds are continuing to grow in popularity with the latest figures from the Australian Prudential Regulation Authority (APRA) showing assets increased to $22 billion.

APRA’s quarterly superannuation statistics for March 31, 2013 show SMSF assets now make up 33.9% of the total $68.4 billion increase in superannuation assets in the last quarter.

SMSF Professionals’ Association of Australian director, Graeme Colley, said this increase means the total assets in SMSFs now stands at $496.2 billion or about 31.5% of the total $1.58 trillion superannuation pool.

“What these numbers say about SMSFs is positive on two fronts,” he said in a statement.

“First, that the fund trustees and their professional advisors have not missed the upswing in the equity markets in this quarter or over the past year.”

Colley said the investment performance of the SMSF sector has been on a par or better than the other sectors.

“Second, that despite the market volatility of the past years post the global financial crisis, people still want to take control of their superannuation and be responsible for it,” he said.

“This reflects both a growing awareness by trustees of superannuation and their capacity to be able to get professional advice on all issues pertaining to the management of their SMSF.”

A spokesperson from the Australian Institute of Superannuation Trustees told SmartCompany the APRA data showed industry funds were aware of the market competition from SMSFs and are increasingly offering products which compete.

“While the figures also show strong growth in the SMSF sector, superannuation funds are increasingly offering innovative, good value new products and services, which mirror some of the features of self-managed funds and aim to help retain members, particularly those with large balances,” the spokesperson said.