Superannuation continues to be a solid investment option according to the latest data released by the Australian Prudential Regulation Authority (APRA) which has revealed the annual industry-wide rate of return for the year ending December, 2019, was 13.8%.
The data, contained within APRA’s December quarter release, revealed the five-year average annual rate of return to December 2019 was 7.1%
The regulator’s data revealed that over the December quarter, total assets increased by 1.7% or $36.2 billion to $2.2 trillion, and that as at the end of the period 51.4% of the $1.9 trillion investments were invested in equities, with 25.3% in international listed equities, 22% in Australian equities and 4.1% in unlisted equities.
It said fixed income and cash investments accounted for 30.9% of investments, with 21.3% in fixed income and 9.5% in cash, while property and infrastructure accounted for 14.3% of investments while other assets including hedge funds and commodities accounted for 3.4%.
The data revealed that industry funds had amongst the lowest allocations to fixed income and cash while retail funds had a higher exposure to equities.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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