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Outperformance by Industry Super Funds highlights success of all-profits-to-members culture

  Published: 20 Sep 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.

The Federal Government has introduced a superannuation bill that risks dismantling the successful not-for-profit superannuation sector whilst leaving the scandal prone banks and their super funds untouched.

“Consistent outperformance by the industry super fund sector over the bank-owned super fund sector embodies the differences between for-profit and not-for-profit governance arrangements. There is no doubt that the governance of industry super funds is a key driver of their superior outperformance” said David Whiteley, Industry Super Australia chief executive.

"Member-first governance and culture is the reason industry super funds have consistently outperformed bank-owned super funds”

Mr Whiteley said the government has still not advanced any evidence that their proposals will improve returns for members.

“This attempt to dismantle industry superfunds member-focussed model will be to the detriment of members’ retirement savings”.

Industry super funds have been alerting the public to the banks’ lobbying campaign to get their hands on workers’ super nest eggs.

The dismantling of the industry super governance model is clearly the first step.

  1 Year % 3 Year % 5 Year % 7 Year % 10 Year %
Industry Super Funds 8.95 7.56 10.1 8.84 5.28
Bank-Owned Super Funds 5.45 4.98 7.61 6.34 2.9
Outperformance 3.50 2.58 2.49 2.50 2.38

Source: SuperRatings Fund Crediting Rate Survey July 2017

David Whiteley is available for interview. Media contact: Lis Bowdler 0412 112 374

Industry Super Australia provides policy, research and advocacy on behalf of 15 not-for-profit Industry SuperFunds who are the custodians of the retirement savings of five million Australians

Consider your own objectives, financial situation and needs before making a decision about superannuation because they are not taken into account in this information. You should consider the Product Disclosure Statement available from individual funds before making an investment decision. Past performance is not a reliable indicator of future performance. 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 MEDIA

*The above material, whilst correct at the time of publication may include references or statements which are no longer current.

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