SMSFs star as super figures strengthen

Self-managed superannuation fund (SMSF) trustees are sitting pretty after Australian Prudential Regulation Authority (APRA) figures revealed they had generally caught the upswing in equity markets over the past year.

According to APRA figures for the 12 months to March 31, total estimated superannuation assets, which include the assets of SMSFs and the balance of life office statutory funds, rose by $187.8 billion (13.5 per cent) to $1.58 trillion.

This included an increase of $68.4 billion (4.5 per cent) in total assets over the March 2013 quarter.

Positivity on two fronts

The SMSF Professionals’ Association of Australian (SPAA) said the figures confirmed the ongoing strength of the SMSF sector.

SPAA director of technical and professional standard, Graeme Colley, said the March quarter had seen SMSF assets increase $22 billion, or 33.9 per cent of the total $68.4 billion increase in superannuation assets, in this last quarter.

Colley added that this increase means the total assets in SMSFs now stands at $496.2 billion or about 31.5 per cent of the total $1.58 trillion superannuation pool.

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

“First, that the fund trustees and their professional advisers have not missed the upswing in the equity markets in this quarter or over the past year. 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 years since the GFC, people still want to take control of their superannuation and be responsible for it.

“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 SMSFs.”