Statistics. Quarterly Superannuation Performance. June 2010 (issued 9 September 2010) Australian Prudential Regulation Authority

Transcription

1 Statistics Quarterly Superannuation Performance June 2010 (issued 9 September 2010) Australian Prudential Regulation Authority

2 Copyright This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. All other rights are reserved. Requests and inquiries concerning reproduction and rights should be addressed to: Commonwealth Copyright Administration Copyright Law Branch Attorney-General's Department Robert Garran Offices National Circuit Barton ACT 2600 Fax: (02) or submitted via the copyright request form on the website at: Commonwealth of Australia [2010] Disclaimer While APRA endeavours to ensure the quality of this publication, APRA does not accept any responsibility for the accuracy, completeness or currency of the material included in this publication, and will not be liable for any loss or damage arising out of any use of, or reliance on, this publication. Forthcoming issues This publication will be released according to the timetable published on the APRA website. Revisions Updated data for the March 2010 quarter has been included in this publication. The Australian Taxation Office (ATO) has also revised self-managed superannuation fund data from June Notation Except where indicated, amounts are expressed in millions of Australian dollars. Both the Australian dollar denominated transactions and the Australian dollar equivalent of foreign-currency denominated transactions are included. The symbol ' * ' indicates that the data have been masked to maintain confidentiality. Rounding Details on tables may not add up to totals due to rounding of figures. Full time series The PDF version of the Quarterly Superannuation Performance contains data from the past five quarters. The full time series from December 2004 is available in the Excel version which can be viewed by ungrouping the columns. Explanatory notes and glossary A set of explanatory notes is provided at the end of the publication to assist the reader in understanding the source and definitions of the data. Enquiries For more information about the statistics in this publication: or write to statistics@apra.gov.au Manager, Superannuation Statistics Australian Prudential Regulation Authority GPO Box 9836 Sydney NSW 2001 Australian Prudential Regulation Authority 2

3 Contents Notice Notice 4 Highlights Highlights 5 Key statistics Key statistics 7 Current quarter Financial performance by fund type Table 1a 8 Financial performance - trends Table 1b 9 Financial position by fund type Table 2a 10 Financial position - trends Table 2b 11 Entity ratios by fund type Table 3 12 Trends by fund type Corporate funds - financial performance Table 4a 13 Industry funds - financial performance Table 4b 14 Public sector funds - financial performance Table 4c 15 Retail funds - financial performance Table 4d 16 Pooled superannuation trusts - financial performance Table 4e 17 Corporate funds - financial position Table 5a 18 Industry funds - financial position Table 5b 19 Public sector funds - financial position Table 5c 20 Retail funds - financial position Table 5d 21 Pooled superannuation trusts - financial position Table 5e 22 Explanatory notes Explanatory notes 23 Glossary Glossary 25 Australian Prudential Regulation Authority 3

4 Important notice APRA s superannuation statistics provide policymakers, regulators, trustees and the community with information to assess the overall performance of the superannuation system. APRA s quarterly and annual statistics provides data on earnings performance, fees, expenses and taxes. APRA s annual publication also provides data on membership profile, the number of investment options offered, the assets in the default investment option, and the composition of the default investment option. Information on rate of return The rate of return (ROR) represents the net earnings of superannuation assets towards funding members benefits, primarily for retirement. The ROR measures the combined earnings of a superannuation fund's assets across all its products and investment options. The Superannuation Industry (Supervision) Act 1993 (SIS Act) requires that superannuation trustees formulate, and give effect to, an investment strategy that has regard to the whole of the circumstances of the superannuation fund and is in the best interest of its members. APRA considers ROR a useful relative measure to assess a superannuation trustee's ability to deliver on the fund s investment strategy for the benefit of all members over time. Many trustees provide individual members with the choice of a wide range of investment options and superannuation products, with different investment goals. The Australian Securities and Investment Commission s FIDO website ( provides guidance on how to compare superannuation investment options and links to other sources of information for this purpose. Change from return on assets to rate of return Prior to June 2009, APRA used a return on assets (ROA) measure. From the June 2009 edition of Quarterly Superannuation Performance onward, APRA has used ROR for superannuation statistical publications. ROR is a better measure than ROA for calculating compound returns. It is a closer approximation to the Global Investment Performance Standards (GIPS) total return, as published by the Chartered Financial Analyst Institute (CFA Institute, 2005). The relative position of superannuation fund returns does not change if ordered by ROR or ROA. APRA's previous research and statistical findings remain valid under both return calculation methods. For more information on ROR, refer to the Response to Submissions paper on APRA s website: Australian Prudential Regulation Authority 4

5 Highlights Industry overview Total estimated superannuation assets decreased by 2.5 per cent in the June 2010 quarter to $1.23 trillion. Over the 12 months to June 2010 there was a 14.1 per cent increase in total estimated superannuation assets. During the June 2010 quarter, industry funds assets decreased by 0.5 per cent and public sector funds' assets decreased by 1.2 per cent. Self-managed superannuation funds' assets decreased by 2.6 per cent, retail funds' assets decreased by 3.5 per cent and corporate funds assets decreased by 7.8 per cent. At 30 June 2010, self-managed superannuation funds held the largest proportion of superannuation assets accounting for 31.8 per cent of assets, followed by retail funds with 27.6 per cent of total assets. Industry funds accounted for 18.4 per cent of total assets, public sector funds 14.3 per cent and corporate funds 4.6 per cent. Small APRA funds held 0.1 per cent of total assets. The analysis and comments below are based on superannuation entities with at least $50 million in assets in their prior year annual return (excluding small APRA funds and single-member approved deposit funds). These entities are required to lodge quarterly returns to APRA. Contributions, rollovers and benefit payments There were $22.6 billion of contributions in the June 2010 quarter, comprising $8.4 billion to retail funds, $7.1 billion to industry funds, $6.1 billion to public sector funds and $1.1 billion to corporate funds. During the quarter, 76.0 per cent ($17.2 billion) of contributions was from employers, while member contributions accounted for 22.8 per cent ($5.2 billion) of total contributions. Other contributions, which include spouse contributions and government co-contributions, accounted for 1.2 per cent ($274 million) of total contributions. Retail funds received $1.8 billion of net rollovers and industry funds received $551 million of net rollovers. Corporate and public sector funds recorded negative net rollovers of $2.9 billion and $386 million respectively. Total benefit payments during the quarter was $11.1 billion. Net contribution flows (contributions plus net rollovers less benefit payments) totalled $10.6 billion in the June 2010 quarter. The graph below shows the composition of net contribution flows for each quarter from September 2005 to June Australian Prudential Regulation Authority 5

6 Financial performance and assets The rate of return (ROR) for the June 2010 quarter was 3.8 per cent. Public sector funds generated a return of 2.9 per cent, industry funds 3.3 per cent, corporate funds 3.9 per cent, and retail funds 4.6 per cent. The graph below shows the ROR for each quarter from September 2005 to June At the end of the June 2010 quarter, 26.8 per cent of superannuation assets were invested in wholesale trusts, 24.1 per cent were held in individually managed mandates and 19.1 per cent were invested in life office funds. Of the remaining assets, 8.5 per cent were held in pooled superannuation trusts, 7.5 per cent were directly invested, 6.6 per cent were in other investments (which includes funds placed with overseas investment managers and leased assets) and 6.1 per cent were held in unlisted public offer unit trusts. The remaining 1.2 per cent of assets were held in receivables and deferred tax assets. Corporate funds and public sector funds held the largest portion of their assets in individually managed mandates. Retail funds held the largest portion of their assets in life office funds. Industry funds held the largest portion in wholesale trusts and also held an almost equal portion in individually managed mandates. Australian Prudential Regulation Authority 6

7 Key statistics Superannuation industry quarterly estimates Assets ($ billion) Number of entities Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 By fund type Corporate Industry Public sector Retail Sub total Pooled superannuation trusts Small APRA funds ,277 4,245 3,878 3,879 3,869 Single-member ADFs Self-managed super funds a , , , , ,198 Balance of life office statutory funds Total b 1, , , , , , , , , ,675 Retirement savings accounts Asset figures for June 2010, March 2010, December 2009 and September 2009 are estimated by applying June 2009 coverage ratios and growth rates. Asset figures for June 2009 have been sourced from the June 2009 annual APRA returns. Growth rates for have been applied to APRA-regulated small funds. The number of superannuation entities is accurate as at the end of the reporting period. These data include registered registrable superannuation entities (RSEs) and unregistered RSEs. These unregistered RSEs are currently in the process of winding up or transferring trusteeship to an RSE Licensee. a Estimated data on self-managed superannuation funds are provided by the Australian Taxation Office (ATO). b Total assets does not include pooled superannuation trusts. Coverage ratios used to estimate total assets Entities with greater than four members Growth rates Other entities Jun 2009 June 2010 > $50 million (actual) All entities (actual) Coverage ratio > $50 million (actual) All entities (estimated) Jun 2009 (actual) Jun 2008 (actual) Growth Jun 2010 (estimated) By fund type ($b) By fund type ($m) Corporate % Small APRA funds 1,975 2, % 1,551 Industry % Single-member ADFs % 38 Public sector % Retail % Pooled superannuation trusts % Australian Prudential Regulation Authority 7

8 Table 1a Financial performance by fund type June 2010 ($ million) Corporate Industry Public sector Retail Total Net assets at the beginning of the quarter 58, , , , ,807 Contributions Employer 1,005 6,056 5,158 4,959 17,179 Member ,251 5,153 Other Total contributions 1,103 7,057 6,051 8,395 22,606 Contribution tax and surcharge ,377 Rollovers Inward 189 3, ,845 14,842 Outward 3,052 2,519 1,125 9,085 15,780 Net rollovers -2, , Benefit payments Lump sums 239 1, ,603 6,344 Pensions ,409 1,768 4,720 Total benefit payments 370 1,950 3,372 5,372 11,064 Net contribution flows -2,129 5,658 2,293 4,783 10,605 Death and disability insurance Total proceeds on insurance policies Cost of member benefit insurance Net flows -2,292 4,659 1,763 3,689 7,819 Investment Income Investment income after doubtful debts 497 1,804 1,615 1,917 5,832 Total capital gains/losses on investments -2,861-9,950-7,402-17,689-37,900 Total investment income -2,364-8,146-5,787-15,772-32,068 Investment expenses Investment management and asset consultant fees Custodian fees Property maintenance costs Other investment expenses Total investment expenses Net investment income -2,409-8,356-5,925-15,859-32,549 Operating expenses Management fees (non-investment) Administration fees Directors/trustees fees and expenses Other operating expenses Total operating expenses ,099 Other income Net earnings -2,451-8,635-6,015-16,459-33,559 Tax expense on earnings , ,644 Net earnings after tax -2,265-7,463-5,074-16,113-30,916 Net operating performance after tax -4,557-2,804-3,311-12,424-23,097 Other changes Net assets at the end of the quarter 54, , , , ,734 Number of entities Australian Prudential Regulation Authority 8

9 Table 1b Financial performance - trends ($ million) Quarter end Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Year end Jun 2009 Year end Jun 2010 Net assets at the beginning of the period 652, , , , , , ,463 Contributions Employer 17,199 14,211 15,012 14,464 17,179 60,358 60,865 Member 5,658 3,409 3,646 3,213 5,153 15,841 15,421 Other ,082 1,262 Total contributions 23,126 17,847 19,256 17,838 22,606 77,280 77,548 Contribution tax and surcharge 2,503 1,763 1,952 1,834 2,377 8,047 7,925 Rollovers Inward 9,900 11,780 12,198 17,479 14,842 44,111 56,299 Outward 9,824 12,071 12,451 18,024 15,780 43,280 58,326 Net rollovers ,026 Benefit payments Lump sums 5,446 5,311 5,427 5,608 6,344 23,297 22,690 Pensions 4,529 4,500 4,449 4,282 4,720 17,966 17,951 Total benefit payments 9,975 9,811 9,876 9,890 11,064 41,263 40,641 Net contribution flows 13,227 7,745 9,127 7,404 10,605 36,848 34,881 Death and disability insurance Total proceeds on insurance policies ,347 1,656 Cost of member benefit insurance ,100 3,473 Net flows 10,316 5,490 6,724 5,105 7,819 27,048 25,138 Investment Income Investment income after doubtful debts 7,444 6,938 3,939 5,348 5,832 22,661 22,057 Total capital gains/losses on investments 23,414 62,445 15,222 8,801-37, ,261 48,568 Total investment income 30,858 69,383 19,161 14,149-32,068-93,600 70,624 Investment expenses Investment management and asset consultant fees ,306 1,351 Custodian fees Property maintenance costs Other investment expenses Total investment expenses ,573 1,623 Net investment income 30,397 68,996 18,796 13,759-32,549-95,160 69,002 Operating expenses Management fees (non-investment) Administration fees ,026 2,207 Directors/trustees fees and expenses Other operating expenses Total operating expenses ,035 1,022 1,099 3,752 4,114 Other income Net earnings 29,510 68,101 17,854 12,825-33,559-98,618 65,221 Tax expense on earnings 430 2, ,644-7, Net earnings after tax 29,080 65,177 17,636 12,473-30,916-91,509 64,371 Net operating performance after tax 39,397 70,667 24,360 17,579-23,097-64,461 89,509 Other changes Net assets at the end of the period 691, , , , , , ,734 Number of entities This table does not include pooled superannuation trusts as their assets are captured by other superannuation entity categories. Australian Prudential Regulation Authority 9

10 Table 2a Financial position by fund type June 2010 ($ million) Corporate Industry Public sector Retail Total Assets Receivables 300 1, ,082 3,822 Investments Direct 3,871 23,236 9,273 23,461 59,840 Individually managed mandates 17,534 73,122 92,911 7, ,011 Pooled superannuation trusts 5,056 10,704 22,129 29,413 67,302 Wholesale trusts 16,123 73,563 34,668 87, ,306 Life office funds 3,783 2, , ,503 Unlisted public offer unit trusts 32 4, ,165 48,410 Other investments 7,778 33,720 10, ,460 Deferred tax assets 522 2,037 1,737 1,782 6,078 Total assets 54, , , , ,733 Liabilities Direct holdings of derivative financial instruments 119 2,428 2, ,624 Borrowings Current tax liabilities 194 1, ,077 Deferred tax liabilities Payables and creditors 297 2,052 1, ,890 Total liabilities 637 6,016 3,924 1,422 11,999 Net assets to pay benefits 54, , , , ,734 Of which: Liability for allocated accrued benefits 54, , , , ,274 Reserves (unallocated benefits) 63 2, ,460 Excess/deficiency of assets Number of entities Australian Prudential Regulation Authority 10

11 Table 2b Financial position - trends ($ million) Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Assets Receivables 6,242 3,287 2,558 2,846 3,822 Investments Direct 50,761 50,487 52,767 54,153 59,840 Individually managed mandates 146, , , , ,011 Pooled superannuation trusts 61,261 66,277 67,175 69,297 67,302 Wholesale trusts 206, , , , ,306 Life office funds 138, , , , ,503 Unlisted public offer unit trusts 44,712 49,767 50,987 49,731 48,410 Other investments 39,047 44,975 51,366 53,241 52,460 Deferred tax assets 7,179 4,627 4,875 4,831 6,078 Total assets 700, , , , ,733 Liabilities Direct holdings of derivative financial instruments 1,672 1,428 2,037 2,336 4,624 Borrowings Current tax liabilities 1,782 2,303 1,888 2,660 3,077 Deferred tax liabilities ,003 1, Payables and creditors 5,337 3,729 2,720 2,787 3,890 Total liabilities 9,177 7,901 7,648 8,902 11,999 Net assets to pay benefits 691, , , , ,734 Of which: Liability for allocated accrued benefits 705, , , , ,274 Reserves (unallocated benefits) 1,519 9,726 8,572 10,445 3,460 Excess/deficiency of assets -15, Number of entities This table does not include pooled superannuation trusts as their assets are captured by other superannuation entity categories. Australian Prudential Regulation Authority 11

12 Table 3 Entity ratios by fund type Quarter end Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Year end Jun 2009 Year end Jun 2010 Total Net investment income ($m) 30,397 68,996 18,796 13,759-32,549-95,160 69,002 Other income ($m) Total operating expense ($m) ,035 1,022 1,099 3,752 4,114 Tax expense on earnings ($m) 430 2, ,644-7, Net earnings after tax ($m) 29,080 65,177 17,636 12,473-30,916-91,496 64,371 Cash flow adjusted net assets 657, , , , ,717 Rate of Return (%) 4.4% 9.4% 2.3% 1.6% -3.8% -12.0% 9.3% Number of entities Corporate Net investment income ($m) 2,722 5,445 1,473 1,133-2,409-7,350 5,642 Other income ($m) Total operating expense ($m) Tax expense on earnings ($m) Net earnings after tax ($m) 2,593 5,155 1,399 1,054-2,265-6,821 5,343 Cash flow adjusted net assets 48,914 51,548 56,460 57,752 57,775 Rate of return (%) 5.3% 10.0% 2.5% 1.8% -3.9% -11.8% 10.3% Number of entities Industry Net investment income ($m) 6,438 17,501 5,585 4,077-8,356-26,130 18,808 Other income ($m) Total operating expense ($m) ,045 Tax expense on earnings ($m) 775 1, ,172-3,381 1,124 Net earnings after tax ($m) 5,439 15,393 5,138 3,623-7,463-23,654 16,691 Cash flow adjusted net assets 179, , , , ,515 Rate of return (%) 3.0% 8.1% 2.5% 1.7% -3.3% -12.1% 8.9% Number of entities Public sector Net investment income ($m) 4,894 13,613 4,258 3,389-5,925-22,242 15,335 Other income ($m) Total operating expense ($m) Tax expense on earnings ($m) , Net earnings after tax ($m) 4,911 12,988 4,067 3,268-5,074-20,811 15,248 Cash flow adjusted net assets 144, , , , ,342 Rate of return (%) 3.4% 8.6% 2.5% 1.9% -2.9% -12.4% 10.2% Number of entities Retail Net investment income ($m) 16,343 32,437 7,480 5,159-15,859-39,439 29,217 Other income ($m) Total operating expense ($m) ,231 2,479 Tax expense on earnings ($m) , Net earnings after tax ($m) 16,137 31,642 7,032 4,528-16,113-40,209 27,089 Cash flow adjusted net assets 284, , , , ,085 Rate of return (%) 5.7% 10.4% 2.1% 1.3% -4.6% -11.8% 9.0% Number of entities Australian Prudential Regulation Authority 12

13 Table 4a Corporate funds - financial performance ($ million) Quarter end Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Year end Jun 2009 Year end Jun 2010 Net assets at the beginning of the period 48,809 51,614 56,540 57,716 58,921 58,362 51,614 Contributions Employer 1, , ,005 4,289 4,055 Member Other Total contributions 1,346 1,053 1,256 1,017 1,103 4,675 4,429 Contribution tax and surcharge Rollovers Inward Outward , ,052 2,840 5,607 Net rollovers ,863-2,015-4,920 Benefit payments Lump sums Pensions Total benefit payments ,400 1,366 Net contribution flows ,129 1,260-1,857 Death and disability insurance Total proceeds on insurance policies Cost of member benefit insurance Net flows , ,510 Investment Income Investment income after doubtful debts 1, ,213 1,312 Total capital gains/losses on investments 1,573 5,174 1, ,861-9,393 4,483 Total investment income 2,763 5,481 1,511 1,168-2,364-7,180 5,796 Investment expenses Investment management and asset consultant fees Custodian fees Property maintenance costs Other investment expenses Total investment expenses Net investment income 2,722 5,445 1,473 1,133-2,409-7,350 5,642 Operating expenses Management fees (non-investment) Administration fees Directors/trustees fees and expenses Other operating expenses Total operating expenses Other income Net earnings 2,677 5,414 1,433 1,097-2,451-7,495 5,492 Tax expense on earnings Net earnings after tax 2,593 5,155 1,399 1,054-2,265-6,821 5,343 Net operating performance after tax 2,804 5,024 1,239 1,127-4,557-6,240 2,833 Other changes Net assets at the end of the period 51,614 56,540 57,716 58,921 54,362 51,614 54,362 Number of entities Australian Prudential Regulation Authority 13

14 Table 4b Industry funds - financial performance ($ million) Quarter end Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Year end Jun 2009 Year end Jun 2010 Net assets at the beginning of the period 177, , , , , , ,332 Contributions Employer 6,025 4,894 5,273 5,208 6,056 21,079 21,432 Member 1, ,369 2,518 Other Total contributions 7,139 5,455 6,096 5,750 7,057 23,827 24,359 Contribution tax and surcharge ,157 3,176 Rollovers Inward 1,641 1,675 1,777 1,638 3,070 8,752 8,160 Outward 1,293 1,151 1,520 1,236 2,519 6,571 6,425 Net rollovers ,182 1,735 Benefit payments Lump sums 1,293 1,320 1,357 1,471 1,538 5,588 5,686 Pensions ,324 1,418 Total benefit payments 1,640 1,681 1,670 1,802 1,950 6,912 7,104 Net contribution flows 5,848 4,298 4,683 4,351 5,658 19,096 18,990 Death and disability insurance Total proceeds on insurance policies Cost of member benefit insurance ,143 1,266 Net flows 4,769 3,464 3,781 3,449 4,659 15,386 15,353 Investment Income Investment income after doubtful debts 2,903 1,722 1,170 1,830 1,804 8,209 6,525 Total capital gains/losses on investments 3,757 15,950 4,567 2,413-9,950-33,683 12,980 Total investment income 6,660 17,672 5,736 4,243-8,146-25,474 19,505 Investment expenses Investment management and asset consultant fees Custodian fees Property maintenance costs Other investment expenses Total investment expenses Net investment income 6,438 17,501 5,585 4,077-8,356-26,130 18,808 Operating expenses Management fees (non-investment) Administration fees Directors/trustees fees and expenses Other operating expenses Total operating expenses ,045 Other income Net earnings 6,214 17,267 5,338 3,845-8,635-27,035 17,815 Tax expense on earnings 775 1, ,172-3,381 1,124 Net earnings after tax 5,439 15,393 5,138 3,623-7,463-23,654 16,691 Net operating performance after tax 10,207 18,857 8,919 7,072-2,804-8,269 32,044 Other changes ,131 6 Net assets at the end of the period 187, , , , , , ,382 Number of entities Australian Prudential Regulation Authority 14

15 Table 4c Public sector funds - financial performance ($ million) Quarter end Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Year end Jun 2009 Year end Jun 2010 Net assets at the beginning of the period 143, , , , , , ,740 Contributions Employer 4,407 4,751 4,636 4,455 5,158 17,093 19,000 Member ,839 3,128 Other Total contributions 5,311 5,512 5,620 5,247 6,051 20,283 22,430 Contribution tax and surcharge ,349 1,600 Rollovers Inward ,686 3,224 Outward ,261 1,125 3,784 4,196 Net rollovers , Benefit payments Lump sums 985 1,248 1,274 1, ,882 4,715 Pensions 2,298 2,516 2,530 2,353 2,409 9,387 9,808 Total benefit payments 3,283 3,764 3,805 3,582 3,372 14,268 14,523 Net contribution flows 1,776 1,529 1,834 1,279 2,293 4,916 6,935 Death and disability insurance Total proceeds on insurance policies Cost of member benefit insurance Net flows 1,355 1,160 1, ,763 3,401 5,205 Investment Income Investment income after doubtful debts 1,222 3,610 1,325 1,988 1,615 4,546 8,537 Total capital gains/losses on investments 3,791 10,095 3,028 1,499-7,402-26,376 7,221 Total investment income 5,012 13,705 4,353 3,487-5,787-21,830 15,759 Investment expenses Investment management and asset consultant fees Custodian fees Property maintenance costs Other investment expenses Total investment expenses Net investment income 4,894 13,613 4,258 3,389-5,925-22,242 15,335 Operating expenses Management fees (non-investment) Administration fees Directors/trustees fees and expenses Other operating expenses Total operating expenses Other income Net earnings 4,800 13,523 4,177 3,293-6,015-22,582 14,978 Tax expense on earnings , Net earnings after tax 4,911 12,988 4,067 3,268-5,074-20,811 15,248 Net operating performance after tax 6,266 14,148 5,464 4,153-3,311-17,410 20,453 Other changes Net assets at the end of the period 149, , , , , , ,149 Number of entities Australian Prudential Regulation Authority 15

16 Table 4d Retail funds - financial performance ($ million) Quarter end Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Year end Jun 2009 Year end Jun 2010 Net assets at the beginning of the period 282, , , , , , ,778 Contributions Employer 5,551 3,606 3,947 3,867 4,959 17,898 16,379 Member 3,735 2,123 2,171 1,883 3,251 10,283 9,428 Other Total contributions 9,330 5,827 6,283 5,824 8,395 28,496 26,329 Contribution tax and surcharge ,892 2,538 Rollovers Inward 7,397 9,254 9,339 14,790 10,845 31,848 44,228 Outward 6,755 9,169 8,959 14,885 9,085 30,085 42,098 Net rollovers ,760 1,763 2,131 Benefit payments Lump sums 2,991 2,534 2,588 2,691 3,603 11,922 11,416 Pensions 1,768 1,500 1,487 1,477 1,768 6,761 6,232 Total benefit payments 4,760 4,034 4,075 4,168 5,372 18,682 17,648 Net contribution flows 5,212 1,878 2,589 1,562 4,783 11,576 10,812 Death and disability insurance Total proceeds on insurance policies Cost of member benefit insurance ,635 1,853 Net flows 3, , ,689 7,679 7,091 Investment Income Investment income after doubtful debts 2,130 1,299 1,205 1,260 1,917 7,692 5,682 Total capital gains/losses on investments 14,293 31,226 6,355 3,991-17,689-46,809 23,884 Total investment income 16,423 32,525 7,561 5,251-15,772-39,117 29,565 Investment expenses Investment management and asset consultant fees Custodian fees Property maintenance costs Other investment expenses Total investment expenses Net investment income 16,343 32,437 7,480 5,159-15,859-39,439 29,217 Operating expenses Management fees (non-investment) Administration fees ,089 Directors/trustees fees and expenses Other operating expenses Total operating expenses ,231 2,479 Other income Net earnings 15,819 31,897 6,907 4,590-16,459-41,506 26,935 Tax expense on earnings , Net earnings after tax 16,137 31,642 7,032 4,528-16,113-40,222 27,089 Net operating performance after tax 20,120 32,639 8,739 5,227-12,424-32,543 34,179 Other changes , Net assets at the end of the period 302, , , , , , ,841 Number of entities Australian Prudential Regulation Authority 16

17 Table 4e Pooled superannuation trusts - financial performance ($ million) Quarter end Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Year end Jun 2009 Year end Jun 2010 Net assets at the beginning of the period 61,216 64,344 70,359 72,251 74,083 72,834 64,344 Units issued to unit holders 2,346 2,272 2,829 3,116 4,527 10,121 12,743 Payments to unit holders 1,534 1,918 2,693 2,538 5,211 9,503 12,361 Investment Income Investment income after doubtful debts ,358 2,081 Total capital gains/losses on investments 1,701 5,816 1, ,914-11,969 5,297 Total investment income 2,581 6,149 1,911 1,430-2,113-9,611 7,378 Investment expenses Investment management and asset consultant fees Custodian fees Property maintenance costs Other investment expenses Total investment expenses Net investment income 2,535 6,108 1,853 1,378-2,166-9,781 7,173 Operating expenses Management fees (non-investment) Administration fees Directors/trustees fees and expenses Other operating expenses Total operating expenses Other income Net earnings 2,488 6,063 1,804 1,330-2,215-9,964 6,982 Tax expense on earnings Net earnings after tax 2,316 5,827 1,750 1,253-2,033-9,294 6,797 Net operating performance after tax 3,128 6,181 1,886 1,830-2,717-8,676 7,180 Other changes Net assets at the end of the period 64,344 70,359 72,251 74,083 71,377 64,344 71,377 Number of entities Australian Prudential Regulation Authority 17

18 Table 5a Corporate funds - financial position ($ million) Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Assets Receivables Investments Direct 3,696 3,410 3,465 3,577 3,871 Individually managed mandates 15,668 18,135 18,374 18,808 17,534 Pooled superannuation trusts 6,257 7,032 6,892 7,011 5,056 Wholesale trusts 15,766 17,158 17,812 18,105 16,123 Life office funds 3,364 3,654 3,457 3,461 3,783 Unlisted public offer unit trusts Other investments 6,518 7,343 7,780 8,054 7,778 Deferred tax assets Total assets 52,888 57,751 58,655 59,656 54,999 Liabilities Direct holdings of derivative financial instruments * * Borrowings * * Current tax liabilities * * Deferred tax liabilities Payables and creditors Total liabilities 1,275 1, Net assets to pay benefits 51,614 56,540 57,716 58,921 54,362 Of which: Liability for allocated accrued benefits 51,534 56,486 57,651 58,848 54,300 Reserves (unallocated benefits) Excess/deficiency of assets Number of entities Australian Prudential Regulation Authority 18

19 Table 5b Industry funds - financial position ($ million) Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Assets Receivables 2,338 1, ,222 1,590 Investments Direct 19,276 18,266 20,207 20,980 23,236 Individually managed mandates 59,144 71,929 73,710 77,191 73,122 Pooled superannuation trusts 10,250 9,494 9,784 9,989 10,704 Wholesale trusts 68,660 72,692 72,644 74,752 73,563 Life office funds 1,293 2,167 2,249 2,793 2,806 Unlisted public offer unit trusts 4,165 4,298 4,315 4,294 4,620 Other investments 23,924 28,418 33,704 34,121 33,720 Deferred tax assets 2,683 1,269 1,209 1,185 2,037 Total assets 191, , , , ,398 Liabilities Direct holdings of derivative financial instruments 1, ,494 1,777 2,428 Borrowings Current tax liabilities 791 1, ,078 1,369 Deferred tax liabilities Payables and creditors 2,275 1, ,056 2,052 Total liabilities 4,402 3,600 3,628 4,342 6,016 Net assets to pay benefits 187, , , , ,382 Of which: Liability for allocated accrued benefits 186, , , , ,956 Reserves (unallocated benefits) 1,096 9,263 7,987 9,866 2,425 Excess/deficiency of assets Number of entities Australian Prudential Regulation Authority 19

20 Table 5c Public sector funds - financial position ($ million) Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Assets Receivables 1,322 1, Investments Direct 7,164 7,164 7,120 7,083 9,273 Individually managed mandates 65,422 73,677 76,559 77,523 92,911 Pooled superannuation trusts 19,693 21,258 21,771 22,473 22,129 Wholesale trusts 46,579 51,001 52,539 53,844 34,668 Life office funds , Unlisted public offer unit trusts Other investments 8,602 9,211 9,880 11,061 10,959 Deferred tax assets 1,641 1,071 1,434 1,591 1,737 Total assets 151, , , , ,073 Liabilities Direct holdings of derivative financial instruments * * ,078 Borrowings * * Current tax liabilities * * Deferred tax liabilities Payables and creditors 1,600 1, ,049 Total liabilities 2,224 2,070 2,176 2,694 3,924 Net assets to pay benefits 149, , , , ,149 Of which: Liability for allocated accrued benefits 165, , , , ,486 Reserves (unallocated benefits) Excess/deficiency of assets -15, Number of entities Australian Prudential Regulation Authority 20

21 Table 5d Retail funds - financial position ($ million) Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Assets Receivables 1, ,082 Investments Direct 20,625 21,647 21,976 22,512 23,461 Individually managed mandates 6,352 7,218 7,497 7,783 7,445 Pooled superannuation trusts 25,061 28,493 28,727 29,823 29,413 Wholesale trusts 75,739 86,556 89,552 92,933 87,953 Life office funds 132, , , , ,960 Unlisted public offer unit trusts 39,715 44,798 46,002 44,757 43,165 Other investments Deferred tax assets 2,192 1,847 1,835 1,672 1,782 Total assets 304, , , , ,262 Liabilities Direct holdings of derivative financial instruments Borrowings Current tax liabilities Deferred tax liabilities Payables and creditors Total liabilities 1,276 1, ,131 1,422 Net assets to pay benefits 302, , , , ,841 Of which: Liability for allocated accrued benefits 302, , , , ,531 Reserves (unallocated benefits) Excess/deficiency of assets Number of entities Australian Prudential Regulation Authority 21

22 Table 5e Pooled superannuation trusts - financial position ($ million) Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Assets Receivables Investments Direct 19,198 20,927 20,723 20,978 21,607 Individually managed mandates 11,843 13,219 14,272 15,268 15,102 Pooled superannuation trusts 2,241 2,502 2,712 2,726 * Wholesale trusts 13,786 15,743 15,535 16,390 15,514 Life office funds 6,303 7,050 7,307 7,446 7,217 Unlisted public offer unit trusts 9,981 10,986 11,216 11,069 9,800 Other investments 4,421 4,927 5,422 5,152 * Deferred tax assets Total assets 69,198 76,543 78,132 80,055 78,484 Liabilities Direct holdings of derivative financial instruments 4,826 5,878 5,685 5,548 6,677 Borrowings Current tax liabilities Deferred tax liabilities Payables and creditors Total liabilities 4,854 6,184 5,881 5,972 7,107 Net assets 64,344 70,359 72,251 74,083 71,377 Number of entities Australian Prudential Regulation Authority 22

23 Explanatory notes Structure The Quarterly Superannuation Performance comprises statistics on superannuation entities that are required to report quarterly to APRA. Funds are required to report quarterly when they had at least $50 million in assets in their prior year annual return and are not a small APRA fund or single-member approved deposit fund. In the June 2010 quarter this captures 315 superannuation entities, comprising 298 APRA-regulated superannuation entities and 17 exempt public sector schemes. Statistics on the whole superannuation industry are published once a year in the Annual Superannuation Bulletin. APRA also produces the Superannuation Fund-level Rates of Return and the Superannuation Fundlevel Profiles and Financial Performance publications which provide disaggregated data in relation to all APRAregulated superannuation funds (excluding pooled superannuation trusts, exempt public sector superannuation schemes, small APRA funds and single-member approved deposit funds). Source The statistics in this publication have been prepared from the following sources: superannuation returns submitted to APRA under the Financial Sector (Collection of Data) Act 2001 and from exempt public sector schemes that report to APRA under a Heads of Government agreement between the Commonwealth and each of the State and Territory Governments; data provided by the ATO on self-managed superannuation funds (SMSFs); returns submitted to APRA under the Life Insurance Act 1995 by registered life companies in Australia; and returns submitted to APRA by retirement savings account providers under the Retirement Savings Account Act (1997). Classification of entities Data in this publication have been broken down by the regulatory classifications under the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the funds' functional description. Regulatory classifications under the SIS Act are subject to different prudential and legislative requirements, whereas the functional classifications are determined by APRA and indicates how the superannuation fund operates. APRA reviewed the classification of superannuation entities in 2005 and details of this review can be found on APRA's website. From time to time, funds may be re-classified and as a result impact the aggregate statistics. This should be considered when making inferences and conclusions about the data. Information on expenses and tax Information on expenses and taxes included in this publication should be used for indicative purposes only. Expenses are generally understated by funds within this publication for the following reasons: indirect investment expenses are generally not reported as this information is not separately identifiable in most cases; not all funds are able to provide complete information on entry and exit fees; and current data collected does not adequately capture some expenses, such as front-end and ongoing commissions. Funds also have different approaches to recognise future tax liabilities and assets. Other notes Pooled superannuation trusts (PSTs) have not been included in financial aggregates because PST assets are from other superannuation funds and are reported elsewhere. Retirement saving accounts (RSAs) are not included in financial aggregates as much of the information is not included in the collections. Unless specified, all ratios stated have not been annualised. Australian Prudential Regulation Authority 23

24 Comparison with Annual Superannuation Bulletin Figures published in the Quarterly Superannuation Performance and the Annual Superannuation Bulletin, whilst relatively close, will not match for the following reasons: Different populations - the population of the quarterly publication comprises funds with at least $50m in total assets and is a subset of the population of the annual publication which comprises all superannuation funds. Different fund reporting periods - not all funds have the same end date for their year of income, although for the majority of funds it is 30 June. The Quarterly Superannuation Performance uses funds' year to date data as at the end of each quarter. The Annual Superannuation Bulletin uses audited annual accounts that correspond to the funds' year of income. The time periods these two publications cover are not perfectly matched, but are similar since the majority of funds have the same end date for their year of income. Different reporting basis - investments in individually managed mandates and investments with overseas managers are reported differently in the annual and quarterly publications. In the Quarterly Superannuation Performance, investments in individually managed mandates are published as a separate item and investments with overseas investment managers are included in other investments. The Annual Superannuation Bulletin looks through to the underlying investments of individually managed mandates and investments with overseas managers and the investments are reported in the underlying investment categories. Fund classifications a fund s functional classification may change over time. The publications use funds' functional classifications as at the end of the reporting period. Therefore when a change has occurred a fund's classification for all four quarters of the year may not match the classification used in the Annual Superannuation Bulletin. Australian Prudential Regulation Authority 24

25 Glossary Accumulation funds are superannuation entities where all members receive benefits based on defined contributions (accumulated benefits). The assets of the fund are invested and any earnings (or losses) are credited (or debited) to the member's account less any charges such as administration fees and insurance premiums. Members bear the full effect of fluctuation in investment earnings. Administration fees are fees paid/payable by the superannuation entity for any administration service provided to the entity. These include internal and outsourced administration services, employee costs and fees paid to the employer sponsor for administration services. Approved deposit funds (ADFs) can receive, hold and invest certain types of rollovers until such funds are withdrawn or a condition of release is satisfied (depending on the preservation status of the assets). ADFs can be either single member or multi member. Asset consultant fees are expenses for fees paid/payable to asset consultants engaged by the trustee in relation to the management of the superannuation entity s investment portfolios. This includes fees paid to independent third parties as well as related entities of the superannuation entity. Balance of life office statutory funds refers to assets held for superannuation or retirement purposes in statutory funds of life insurance companies, excluding the assets held in life office statutory funds by superannuation entities. The balance of life office funds includes annuities and assets backing non-policyholder liabilities. These products are regulated under the Life Insurance Act (1995). Borrowings include securities sold under agreements to repurchase, drawn down balance of overdraft facilities, and short-term loans or borrowings. Cash flow adjusted net assets is the sum of net assets at the beginning of the period and half of net flows. Contributions tax and surcharge represents tax expenses in relation to taxable contributions made to the superannuation entity during the period (contributions tax) and contributions surcharge tax. Corporate funds are regulated superannuation entities with more than four members established for the benefit of employees of a particular entity or a group of related entities, with joint member and employer control. Custodian fees are expenses incurred in relation to custodial services rendered to the superannuation entity. A custodian is an entity that holds title of the assets on behalf of the superannuation entity, but where the powers of investment management remain with the trustee. Deferred tax assets refers to amounts of income taxes recoverable in future reporting periods. Defined benefit funds are superannuation entities where all members are entitled to receive defined benefits. In defined benefit funds, a member's benefits are calculated based on a formula specified in the trust deed. Usually the member's final benefit depends on years of service with an employer (or years of membership of the fund) and level of salary near retirement. Directly invested assets includes investments that are made by the superannuation entity in its own name as part of the internal investment management function. It includes investments such as cash and deposits, placements and loans, equities and property holdings. Director/trustee fees and expenses are fees paid/payable by the superannuation entity to the directors/trustee(s) for carrying out the functions of a trustee/director, including any consulting or administration services provided. Eligible rollover funds (ERFs) are superannuation funds or approved deposit funds which are eligible to receive benefits automatically rolled over from other funds. ERFs typically accept superannuation monies from other funds where the member has become 'lost'. Employer contributions are contributions received from employers and includes (but is not limited to) all mandated employer contributions (such as Superannuation Guarantee amounts), salary sacrifice contributions and voluntary employer contributions, less any repatriation to employer sponsors. Appropriations for major Commonwealth public sector superannuation schemes where benefits were paid directly from Commonwealth Consolidated Revenue are classified in employer contributions. Australian Prudential Regulation Authority 25

26 Excess/deficiency of assets is reported by defined benefit funds when the entity has had formal actuarial valuation as at the end of the reporting period and the actuary's report is available by the reporting due date. Exempt public sector superannuation schemes (EPSSSs) are public sector superannuation schemes that choose not to be regulated by APRA. However, for statutory purposes, a number of EPSSSs report to APRA under an agreement between the Commonwealth Government and each of the State and Territory Governments. Schedule 1AA of the SIS regulations contains a list of EPSSSs. Fees and commissions are income earned by the superannuation entity in the form of a fee or a commission. These typically include income for scrip lending and underwriting activities. This item in incorporated in other income. Fund reporting period is the end date of a fund's year of income. Fund type is the functional classification determined by APRA. For more information on APRA's classifications, refer to the Classification of superannuation entities on APRA's website: Hybrid funds are superannuation entities that have a combination of both accumulation and defined benefit members. Industry funds are regulated superannuation entities with more than four members which historically have provided for employees working in the same industry or group of related industries. Many industry funds are now public offer funds and offer membership to members of the public. Investment expenses are all expenses which are associated with the generation of income on the investment portfolio of the superannuation entity. Investment income is income generated from the investment portfolio of the superannuation entity. Investment management fees are expenses which relate to the management of the superannuation entity s investment portfolios. Investments placed with an investment manager are those that are not directly held, such as individually managed mandates, wholesale trusts and pooled superannuation trusts. Data for superannuation assets placed with investment managers are sourced from the ABS prior to Inward rollovers refer to member s benefits that have been rolled over or transferred in from another superannuation entity and may include assets transferred from life insurance offices and retirement savings accounts (RSAs). Leased assets are those assets which fall under a financial lease for the superannuation entity. This item in incorporated in other investments. Life office statutory funds include monies associated with investment in insurance or life policies. Superannuation assets invested in life office statutory funds are sourced from life insurance returns submitted to APRA under the Life Insurance Act (1995). Lump sum benefit payments are benefit payments paid as a lump sum and includes (but is not limited to) retrenchment, redundancies, resignation and disability benefit payments. This item does not include lump sum rollovers or pension benefit payments. Management fees (non-investment) are fees paid by the superannuation entity for management services provided by the superannuation entity. Consulting fees and trailing commissions are included in this item. Member contributions are contributions received from members and include (but are not limited to) member post-tax contributions and self-employed contributions. This item does not include rollovers or transfers from other superannuation entities. Net assets are total assets less total liabilities. Net assets at the beginning of the period are assets at the end of the previous period. Net contribution flows is total contributions plus net rollovers less benefit payments and are gross of contributions tax and surcharge. Some entities are unable to provide a breakdown of net contributions flows into contributions, rollovers and benefit payments. Net contribution flows is not dependent upon these breakdowns and is correct within reasonable bounds of statistical accuracy. Net cost of member benefit insurance represents members' death and/ or disability insurance premiums expense less rebates received or accrued from insurers in relation to insurance premiums. Australian Prudential Regulation Authority 26