Explosive Growth in SMSF assets under management
Family Super funds come out on top
Recently revised statistics released by ATO in relation to family Self Managed Super Funds shows that SMSFs are now, for the first time, the biggest segment of the superannuation industry.
Yes, you have read that right - it is now the biggest segment.
It goes without saying that these statistics are fundamentally important to the make-up of the superannuation industry.
The revised data has only now become available as the ATO finalized collating all the information gathered from SMSF tax returns for the 2007 tax year.
In 2006/07 about 40,000 new SMSFs were created. At the same time the number of SMSFs with assets greater than $1m increased by over 42,500.
It seems reasonable to conclude that in net terms nearly all the growth that occurred in the number of funds in 2006/07 occurred at the larger SMSF asset segment.
In fact funds with more than $1m used to make up 11.75% of all SMSFs. They now make up just under 30% of all SMSFs.
The average assets per SMSF now stands at $940,000 (a 2006/07 figure) which is almost double the 2003/04 figure.
The cost of running these funds has not increased. The average cost of running these funds in 2006/07 was about 1.4% of assets under management - the same figure that applied in previous years.
SMSFs are the only major segment of the superannuation space that is showing any significant growth.
It appears that some people with larger super fund balances will move out of their retail and/or corporate super arrangements and set up their own family SMSF.
Roxburgh Securities specialises in family self-managed super funds.
Phone [08] 9379 3555 or email steve@blizard.com.au for an obligation free appointment to review your super funds.
Self-managed super fund statistical report