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Industry super funds run rings around banks – new data image
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Industry super funds run rings around banks – new data

Published: 21 Feb 2018

Not-for-profit industry super funds continue on average to outpace their bank-owned competitors, the latest independent ratings agency data shows.

According to the monthly SuperRatings SR50 Balanced Index data, industry super funds have on average outperformed bank-owned retail funds by 3.29 per cent over one year, and 3.49 per cent over three. Across the five, seven and ten year periods the performance gap is well above 2 per cent.

Industry Super Australia public affairs director, Matt Linden, said the results highlighted the strong link between business model and member returns.

“Industry super funds send all profits back to their members, and this is reflected in better retirement savings returns,” said Linden.

“Bank-owned retail funds serve two masters, splitting returns between shareholders and members”.

“Two per cent doesn’t seem like much, but over a lifetime it may add up to tens of thousands of dollars more – or, sadly, less - at retirement,” he said.

The SuperRatings results for the period ending 31 January 2018 are in the table below.  

Average Annual Rates of return (%), Industry Super Funds & Bank Owned Super Funds,1,3,5,10 Years to 31 January 2018
   1 Year %  3 Year %  5 Year %  7 Year %  10 Year %  
Industry Super Funds 12.7 8.3 10.0 8.8 6.2  
Bank-Owned Super Funds 9.4 4.8 7.1 6.2 4.0  
Outperformance 3.29 3.49 2.94 2.66 2.21  
Source: ISA analysis of SuperRatings Fund Crediting Rate Survey, SR50 Balanced (60-76) Index, January 2018  

Matt Linden is available for interview. Media contact: Phil Davey 0414 867 188

Industry Super Australia provides policy, research and advocacy on behalf of 16 not-for-profit Industry SuperFunds who are the custodians of the retirement savings of six million Australians.

Industry Super Australia Pty Ltd ABN 72 158 563 270, Corporate Authorised Representative No. 426006 of Industry Fund Services Ltd ABN 54 007 016 195 AFSL 232514.Consider a fund’s Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision. Past performance is not a reliable indicator of future performance.

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