Industry funds trump master trusts again
Industry super funds have outperformed commercial master trusts on net benefits to members for the ninth quarter in a row, according to new comparative research modelling.
Researcher SuperRatings found industry super funds outperformed commercial master trusts over rolling one, three and five year periods across a wide range of superannuation fund sizes
It found that over the past five years to March 31, 2006, earnings for average industry funds were $12.30 for every $1.00 taken out in fees. By comparison, master trusts, on average, gave back just $4.50 for each $1.00 in fees charged.
It concluded that over a 40-year working life, Australians could be more than 28 percent better off in an industry super fund, based on existing fee structures.
It claimed this was equivalent to having $143,906 more (in today’s dollars) or $386,397 more (in future dollars) in members’ super account at retirement.
Industry Fund Network’s Garry Weaven said the research “reveals why employers must consider an industry super fund when choosing the default super fund for their organisation.
“Employers who do not nominate an industry super fund as the default fund could risk their employees missing out on tens of thousands of dollars in retirement income.”
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
