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Industry funds outflows to SMSFs double

Mike Taylor30 May 2024
Arrows going separate ways

There has been a doubling in outflows from industry funds to self-managed superannuation funds over the past two years, according to new analysis from WealthData.

As well, the WealthData analysis points to retail superannuation funds narrowing the long-standing performance gap with industry funds.

The analysis is based on the latest quarterly superannuation data provided by the Australian Prudential Regulation Authority (APRA) together with that from the Australian Bureau of Statistics and the Australian Taxation Office (ATO).

According to WealthData principal, Colin Williams, after a period of restricted transfers out to SMSFs from APRA-regulated funds, the latest data has pointed to a steady increase in transfers.

“The flow out to SMSFs has essentially doubled since Q1 2022, driven largely by increased losses at Industry funds,” he said.

The WealthData analysis also pointed to SMSFs continuing to hold market share, accounting for around 25% of total super assets, while industry funds retain market dominance with 34.9% albeit that retail funds have grown marginally from 20% to 20.3% market share.

Williams also pointed to industry funds beginning to feel the weight of outflows, with benefit payments in the form of pensions having more than doubled from $1.49 billion in the first quarter of 2020 to $3.07 billion in the March quarter.

He said that, by contrast, retail funds had experienced a more stable trend, increasing from $3.09 billion to $3.8 billion.

The WealthData analysis coincides with that contained in the Investment Trends 2024 Super Member Engagement Report which confirmed that member engagement remained highest for members with balances of over $250,000.

“Member engagement with their super fund continues to increase, as many more look to take matters into their own hands when it comes to retirement planning,” Ludovic Sevestre, Associate Research Director at Investment Trends said. “Our data also reveals that the more interactions non-retirees have had with their super fund over the past year, the more likely they are to start thinking about retirement.”

WD SMSF

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Nuffyland
1 month ago

This is the real reason super funds want spend big on conflicted advice which skirts consumer protection laws.

I believe in freedom
1 month ago

You can guarantee attacks on SMSFs are about to escalate further. ASIC has already said they are targeting SMSF establishment advice going forward.

Fred
1 month ago

Most of the SMSF’s I see aren’t established by advisers. ASIC has no interest in going after unlicensed accountants and property developers. The Green’s however don’t like SMSF’s and property so that might help out the industry funds because the ALP won’t argue too much if it helps their donors.

My Precious
1 month ago

Industry Super will again demand SMSF be banned.
How dare they take our money, says Industry Super Australia.
It’s our money, not yours…my precious.

one foot out the doora
1 month ago

If anyone attended the very good MLC technical session on the $3M super tax yesterday, it’s the SMSF space that will be impacted the most.

Just another idiot who doesn't understand
1 month ago

With the outflows growing as baby boomer’s drawdown on their super. You can see the Industry funds will be pushing Government to mandate limited or no lump sum withdrawals on or in retirement to limit pensions withdrawals. Otherwise, when the tide turns and the outflows out way the inflows (they are already even), the illiquid investments might come back to bite them!