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SMSFs likely to be $1 trillion by September 2023!
APRA has recently published its quarterly superannuation statistics for the December 2021 Quarter. One key item from that publication is that total super assets at 31 December 2021 are estimated to be $3.5 trillion, of which the SMSF segment is estimated to be $876 billion.
During the 12 months to 31 December 2021, total assets in the SMSF segment have increased by almost $100 billion. The increase in total assets is most likely due to the improvement in asset values.
If the rate of increase continues, it is likely that the asset value of the SMSF segment will reach $1 trillion by the September 2023 Quarter.
Another key item is the continuing growth of the Industry fund segment, from an estimated $817 billion at 31 December 2020 to an estimated $969.2 billion at 31 December 2021. By the time this article in appears in SUPERCentral News, the industry fund segment will have well and truly exceeded the magic $1 trillion mark.
The final key item is that pace of consolidation in the industry segment appears to be slowing down. In the 12 months to 31 December 2021, the number of industry funds had only decreased by one from 34 to 33. It is likely that the pace of consolidation will pick up in the next 12 months as the various prudential and regulatory changes afflicting the non-SMSF segment of the superannuation industry begin to impact smaller industry funds and the underperformance of some products highlighted in the APRA heatmaps of MySuper and Choice products becomes more widely known.
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