Superannuation
1. Implications of Superannuation on the financial Industry 2.1. Superannuation - a significant contributor to the financial industry
Superannuation impacts significantly on financial markets especially on the Australian stock exchange, with total assets of over $1.3 trillion dollars (at March 2011) and large annual flows, particularly (APRA 2011). Superannuation can support investment, which facilitates Australian companies to expand and drives economic growth. From June 2000 to March 2011 superannuation funds hold aggregate asset more than doubled, increase from approximately $480 billion to $1,357 billion (APRA 2009b and APRA 2011).
Superannuation guarantee has been responsible for a significant proportion of the growth and diversity of financial services and insurance industry. Superannuation occupied 45 per cent of the finance and industry sector in Australia — as shown in Figure 1.1 below. (IBISWorld 2008).
Regarding to the domestic competition, the insurance and superannuation companies are becoming strong financial institutions (IBISWorld 2008). 2.2.1. Superannuation in various investment assets * Stock market
According to ASX, the percentage of Australian equities that superannuation funds held, increased from 8.5 per cent in 1998 to 16.5 per cent in 2007 (ASX 2007). By contributing a significant portion to total market capitalization, superannuation helps grow the available funds for investment and expansion of Australian companies. Australia has been a “shareholder society” whose workers now have more money that invested in managed funds compare to any other economy. * Managed funds
Superannuation funds are the biggest contributor to managed funds. As at the March quarter 2011, superannuation funds hold 71 per cent of total assets in managed funds. (life insurance funds, public unit trusts other funds made up the remaining 29 per cent) (ABS 2011). * Private equity
Superannuation funds invested in venture capital and
Superannuation impacts significantly on financial markets especially on the Australian stock exchange, with total assets of over $1.3 trillion dollars (at March 2011) and large annual flows, particularly (APRA 2011). Superannuation can support investment, which facilitates Australian companies to expand and drives economic growth. From June 2000 to March 2011 superannuation funds hold aggregate asset more than doubled, increase from approximately $480 billion to $1,357 billion (APRA 2009b and APRA 2011).
Superannuation guarantee has been responsible for a significant proportion of the growth and diversity of financial services and insurance industry. Superannuation occupied 45 per cent of the finance and industry sector in Australia — as shown in Figure 1.1 below. (IBISWorld 2008).
Regarding to the domestic competition, the insurance and superannuation companies are becoming strong financial institutions (IBISWorld 2008). 2.2.1. Superannuation in various investment assets * Stock market
According to ASX, the percentage of Australian equities that superannuation funds held, increased from 8.5 per cent in 1998 to 16.5 per cent in 2007 (ASX 2007). By contributing a significant portion to total market capitalization, superannuation helps grow the available funds for investment and expansion of Australian companies. Australia has been a “shareholder society” whose workers now have more money that invested in managed funds compare to any other economy. * Managed funds
Superannuation funds are the biggest contributor to managed funds. As at the March quarter 2011, superannuation funds hold 71 per cent of total assets in managed funds. (life insurance funds, public unit trusts other funds made up the remaining 29 per cent) (ABS 2011). * Private equity
Superannuation funds invested in venture capital and