FED: Superannuation assets reach $364 billion =2

AAP General News (Australia)
12-22-1998
FED: Superannuation assets reach $364 billion =2

The strong growth in national superannuation assets occurred despite an overall net
investment loss during the September quarter.

This was due partly to a downturn in Australian equity markets. Net deposits accounted for
all asset growth during the quarter.

The number of member superannuation accounts rose three per cent during the September
quarter to 18.8 million.

Contributions during the year to September 1998 totalled $35.6 billion, up from $29.6
billion in the previous 12 months.

Benefit payments rose 13.1 per cent in the year to September, totalling $21.3 billion, up
from $18.8 billion in the previous 12 months.

Assets directly invested by trustees showed the strongest growth during the September
quarter, up 2.1 per cent, while investment managers had 39.1 per cent or $142.5 billion of
total superannuation assets at the end of the quarter, up from 38.8 per cent a year ago.

The share of superannuation assets invested overseas fell during the September quarter to
15.7 per cent, or $57.3 billion, down $2.9 billion.

The Australian Prudential Regulation Authority said the change in mix of investments
suggested more volatile equity and overseas markets had led to superannuation funds adopting a
more defensive investment strategy.

The value of assets in direct property rose slightly in the September quarter to 7.2 per
cent of total superannuation assets.

AAP kaw/ss/cjh/de

KEYWORD: SUPERANNUATION 2 CANBERRA

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