Federal Treasurer, Josh Frydenberg has refused to concede that industry funds are necessarily better performers than retail funds, arguing that Productivity Commission (PC) determined otherwise.
Speaking on radio about the Government’s continuing effort to address superannuation fund governance issues, Frydenberg also brushed off suggestions the Government was intent on removing union officials from super fund boards.
“There is a role to be played obviously for those employee representatives,” he said. “What we’re focused on is more transparency in relation to the superannuation system and more governance.”
With respect to the relative perform of industry funds, Frydenberg said the PC had looked at the issue and “they identified that there were 42 underperforming funds and the majority of them actually were industry funds by number, but actually by value the majority were retail funds”.
“So, there is underperforming funds at both the industry and retail level,” the Treasurer said.
Frydenberg said it was up to superannuation fund members to vote with their feet to put their money where they believed they would get the best return.