Industry funds among worst performers: APRA
The Australian Prudential Regulation Authority (APRA) is taking a close look at poor performing superannuation funds, and that includes a large proportion of not-for-profit and industry funds.
Under questioning from Labor’s shadow minister for financial services, Senator Katy Gallagher, APRA deputy chair, Helen Rowell has told the Senate Economics Committee that the regulator was taking a close look at poorer performers with respect to investment returns.
Gallagher’s had sought an explanation from Rowell on why many retail superannuation funds had under-performed not profit and industry funds.
However, Rowell said that where bottom performers were concerned, the numbers included a large proportion of not for profits and industry funds.
Under further questioning from Gallagher, Rowell explained that it also needed to be understood that the relative performance of retail funds could be skewed by the decision-making of individual members.
She said that perceptions of relative performance could be distorted because individual members often chose allocations which were much more conservative than those pursued by industry funds.
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