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Long term performance of Industry Super Funds shows success of member-focused governance image
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Long term performance of Industry Super Funds shows success of member-focused governance

Published: 20 Oct 2017

The latest independent data on the performance of Australia’s superannuation funds provides further evidence that the government’s proposed changes to not-for-profit super funds miss the mark.

According to monthly SuperRatings data, industry super funds have outperformed bank-owned super funds on average by more than 2 per cent over 10 years.

“Consistent outperformance by industry super funds over bank-owned super funds embodies the differences between for-profit and not-for-profit governance arrangements. There is no doubt that the governance of industry super funds drives their superior performance” said Matthew Linden, Industry Super Australia director of public affairs.

“The proposed changes to the governance structures of industry super funds, currently before the federal Parliament, would impose unwarranted and costly changes to the sector’s best performers”.

“With no evidence suggesting these changes would deliver improved member benefits, we call on the Parliament to reject them”.

“If anything, the data highlights the persistent underperformance of for-profit, bank-owned funds over the last decade. Forcing industry funds to emulate these underperforming retail funds overseen by a majority of independent directors is likely to impact the retirement savings of millions of Australians,” he said.

  1 Year % 3 Year % 5 Year % 7 Year % 10 Year %
Industry Super Funds 10.00 8.05 10.02 8.65 5.13
Bank-Owned Super Funds 6.68 5.66 7.57 6.26 2.86
Outperformance 3.33 2.39 2.46 2.39 2.27

Source: ISA analysis of SuperRatings Fund Crediting Rate Survey (FCRS), SR50 Balanced Index, September 2017.

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

Industry Super Australia provides policy, research and advocacy on behalf of 16not-for-profit Industry SuperFunds who are the custodians of the retirement savings of five 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 and should never be the sole factor considered when selecting a fund.

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