The pace of consolidation in the corporate superannuation sector picked up in the 2013 financial year, with the number of corporate funds shrinking by 14 to 108, according the latest quarterly superannuation statistics from the Australian Prudential and Regulation Authority.

Four industry fund mergers dragged the number of industry funds down to 52 while there were a healthy 127 retail funds at June 30, 2013.

The APRA statistics showed self-managed superannuation funds held the largest proportion of superannuation assets, accounting for 31.3 per cent of the $1.62 trillion pool followed by retail funds with 26.1 per cent, industry funds with 20 per cent of assets and public sectors funds representing 15.9 per cent.

However the growth rate of industry funds outstripped their rivals, with industry super fund assets soaring 20.9 per cent in the year to June 30, 2013. SMSFs climbed 15.5 per cent, public sector funds grew 15.3 per cent, retail funds increased 13.7 per cent and corporate assets under management rose 10 per cent.

David Whiteley, chief executive of Industry Super Network said the APRA data demonstrated the benefits of the industry funds’ savvy marketing and advertising campaigns, which had boosted member awareness and retention, as well as attracted new members.

He predicted that in the next three to five years, financial planners would become more familiar and comfortable with how industry funds operated and begin recommending industry funds more broadly provided they are the best solution for the client.

“In the past financial planners have not recommended industry funds but the evolution of the advice industry into a profession will see financial planners become sector-neutral,” he said.

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One comment on “The incredible shrinking super funds”

    Hopefully the evolution of Industry funds to transparent structures with investments that can be researched will allow planners to use them in future. It is impossible to recommend a product that is not transparent as the liability would then rest on the planner.

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