Industry funds outperform banks by 1.97pc
Industry superannuation funds are continuing to outperform bank-owned alternatives, new data from SuperRatings reveals.
Over the last 10 years industry funds have provided an average rolling return of 7.18 per cent, compared with a 5.21 per cent earned by bank-owned super funds.
The SuperRatings data also found that industry super funds outperformed bank-owned funds by an average of 1.87 per cent over the 12 months to 31 August.
A spokesperson for Industry Super Australia (ISA) said the performances of industry funds over the last decade highlighted the need for a default super safety net.
“With four in five Australians not choosing their own super fund and the Government freeze on increases to the super guarantee, the data reinforces the need for a default super safety net,” the spokesperson said.
“The safety net is administered by the Fair Work Commission and short-lists the best performing super funds to become employer defaults.
“The banks are trying to scrap the default super safety net so they can leverage their business banking relationships and cross-sell employee default funds to employers.
“ISA has called for an inquiry into the cross-selling of employee default super funds by banks leveraging their business banking relationships.”
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.