ISA claims industry funds beat retail on MySuper
Industry Super Australia (ISA) has claimed industry super funds have outperformed their bank-owned counterparts when it comes to median returns.
The claims come after the Australian Prudential Regulation Authority (APRA) released the Quarterly MySuper Statistics, which contained MySuper data on a product-by-product basis up to the September 2014 quarter.
Industry funds showed a median investment return of 1.51 per cent, while bank-owned funds returned 1.02 per cent for the quarter ending September.
“While this is only the second release of APRA data measuring the performance of MySuper products, the results to date are consistent with the historical data recorded by SuperRatings demonstrating better returns delivered by industry super funds to their member over one, three, five, seven and ten year periods when compared to the retail sector,” ISA chief David Whiteley said.
Whiteley also took the opportunity to re-emphasise the need for a strong safety net for retirement savings, which he said protects the super of eight out of 10 members who do not choose their own super fund.
“The banks, however, treat super as just another product from which to make a profit. The banks continue to lobby to dismantle the safety net which screens super funds based on their performance,” he said.
In October, the Financial Services Council claimed the average MySuper fund offered by its members performed better than their industry fund counterparts, based on APRA interim Quarterly MySuper Statistics.
FSC said its members’ fund had average net returns of 3.4 per cent compared to industry funds’ average return of 3.18 per cent since MySuper began on 1 January.
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.
