Between 1988 and 2018 the funds management industry has grown from approximately $200 billion to more than $2 trillion under management. The major contributor to this growth has been funds contributed to superannuation.

(a) Explain why there has been such growth in the superannuation industry in Australia.

(2 marks)

(b) Describe the type of investment assets and asset allocation strategy that a superannuation fund would select. Explain why this would be the case.

(3 marks)