ISA points to industry fund out-performance
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.”
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.