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
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
