Industry super funds outperform retail super and the banks

Industry super funds have outperformed bank-owned super funds and retail super funds, according to monthly data from SuperRatings.

The industry funds outperformed their competitors over the one, three, five, seven and 10-year periods assessed.

Over just one year, industry funds provided a 1.67% higher return than their private counterparts, based on balanced fund median rolling returns to 31 October 2014. Similarly strong results were found over three (1.13%), five (1.49%) and seven (1.60%) years.

The greatest difference was found over a ten-year period, where industry funds provided a 1.87% higher return than bank-owned or retail alternatives.

Industry Super Australia (ISA) chief executive David Whiteley welcomed the results.

“Over the long and short term, independent research reinforces that industry super fund members benefit from the undivided loyalty the funds have to their members,” he said.

Eight in ten Australians do not choose their own super fund, relying on the industry fund selected by their employer.

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