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Super returns defy the critics

Mike Taylor23 November 2021
Paper planes flying through clouds

The value of superannuation as an investment vehicle has been reinforced by the latest (September quarter) superannuation data released by the Australian Prudential Regulation Authority (APRA) revealing strong investment performance.

The data revealed overall investment performance to the end of September was 16.7%, representing a strong increase on the rate of return (ROR) for the prior period of minus 1.1%.

The five-year average rate of return was 7.8%.

The APRA data also confirms the degree to which superannuation fund investment allocations have changed, with international equities now representing a higher proportion than domestic equities.

“Over the September 2021 quarter, total assets increased by 2.4% (or $58.2 billion), nearing $2.5 trillion,” the APRA analysis said.

“With over $2.2 trillion in investments, 55% were invested in equities (23% in Australian listed equities; 28% in international listed equities.”

“Fixed income and cash investments accounted for 28% of investments (18%per in fixed income and 10% in cash). Property and infrastructure accounted for 14% of investments whilst other assets, including hedge funds and commodities, accounted for 3%.

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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