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New performance data highlights chronic underperformance of bank-owned Super

  Published: 24 Apr 2017

Independent data measuring the performance of Australia’s superannuation funds shows not-for-profit industry super funds continue to outperform “for profit” bank-owned funds in the short, medium and long term.

The latest SuperRatings monthly data shows, on average, industry super funds have outperformed bank-owned super funds by more than 2% over 10 years.

“While the banks chase profit at members’ expense, industry super funds are focused on getting the best super returns for Australians workers,” said Industry Super Australia chief executive David Whiteley.

“The trustworthy and high performing industry super fund model has consistently outperformed bank-owned funds for two decades”.

“The millions of Australians who entrust their retirement savings with an industry super fund can have faith that their fund is putting their interests first, without the need to also deliver returns to shareholders”.

Mr Whiteley said the same could not be said for bank-owned super funds who had divided loyalties, driving shareholder as well as member returns. 

“The ‘for-profit’ culture enshrined in the banks’ business model raises questions of the appropriateness of bank involvement in compulsory superannuation, given super is a mandatory savings system central to Australia’s long-term economic and social prosperity”.

“Australia’s compulsory super system should be run solely in the interests of members,” he said.

Fund type Rolling 1 Year % Rolling 3 Year % Rolling 5 Year % Rolling 7 Year % Rolling 10 Year %
Industry Super Funds 11.88 8.07 9.62 7.93 5.28
Bank-Owned Super Funds 9.55 5.99 7.53 5.80 3.15
Outperformance 2.33 2.08 2.09 2.13 2.13

Source: ISA analysis of SuperRatings Fund Crediting Rate Survey, March 2017

David Whiteley is available for interview. Media contact: Phil Davey 0414 867 188 

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.

*The above material, whilst correct at the time of publication may include references or statements which are no longer current.

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