Industry super outperforms bank owned funds
Monthly data from SuperRatings revealed that industry super funds once again outperformed bank-owned funds over both the short and long term. The outperformance ranged from 0.13% over a 1-year period to 1.84% over a 10-year period, with industry super funds generally gaining more ground over the longer term.
Industry Super Australia Chief Executive David Whiteley welcomed the results, and said that they confirm retirement savings of members are in good hands. Whiteley highlighted the industry super fund ethos of “profit only to members” as maximising returns on members’ super contributions and fitting in with the core objective of the super system: to ensure as many Australians as possible can retire with decent living standards.
“Over the long and short term, independent research reinforces that industry super fund members, many of whom rely on high performing funds in the default super safety net, have benefitted from the undivided loyalty provided by industry super funds,” he added.
Whiteley emphasised the importance of industry super funds as “the default superannuation safety net which safeguards the super savings of eight in ten Australians who don’t select their own funds”.
He also warned against lobbying attempts by banks to scrap this safety net and hence avoid “any transparent process for the selection of default super funds”.
“Instead the banks want to bundle up business banking and employer default superannuation arrangements which will create barriers to entry to super funds not owned by banks,” he said.
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