Industry Super Australia (ISA) has once again used figures released by SuperRatings to point to the outperformance of industry super funds over the retail sector.
The SuperRatings’ Fund Crediting Rate Survey found that the median industry super fund outperformed the median retail fund over one, three, seven and 10 years.
Industry funds’ rolling 10-year return was 7.3 per cent while retail funds stood at 5.60 per cent as at January 31, 2014. Rolling one-year return for industry funds was 13.38 per cent, while retail funds’ one-year return was at 11.94.
“The latest results strengthen the case for using net returns as a key determinant in the selection of default funds for employees”, said David Whiteley, the chief executive officer of Industry Super Australia.
Industry super funds advocated for long-term net performance as the key consideration in the selection process for default funds, while retail super funds have advocated a position that would exclude such criteria, Whiteley said.
“The cost of under-performance by retail super funds to national savings is estimated to be $97 billion for the period July 1996 to June 2013,” he said.
“For individuals, under-performance means lower super savings.”