Volatility wiped super gains in March

The latest super statistics from the prudential regulator have revealed a significant drop in assets over the first quarter of this year as a wave of COVID-related volatility hit markets.

APRA’s super statistics for March revealed a decrease of 7.7 per cent in total super assets over the first three months of 2020, including a decrease of 7.4 per cent in APRA-regulated assets and 9.4 per cent in SMSF assets.

The statistics revealed the COVID-19 crisis had already erased most of the gains the super sector had made in 2019 by the end of the first quarter, with total super assets declining from around $2.74 trillion as at 31 March 2019 to $2.73 trillion on 31 March 2020.

APRA-regulated assets were up 1.1 per cent to $1.86 trillion compared to $1.84 trillion in March 2019, while SMSF assets were down 4.1 per cent from $704 billion to $676 billion, the data revealed.

Benefits paid out of super also rose 14.5 per cent to $85.8 billion in the year to March 2020 compared to $75 billion in the year to March 2019, as more fund members looked to cash out their super in the wake of the crisis.

However, contributions to super rose over the course of the 12 months to March, with total contributions up 6.9 per cent to $121.1 billion, while net contribution flows increased by 27.7 per cent to $45.4 billion.

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Volatility wiped super gains in March
Volatility wiped super gains in March
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