21 February 2018
Not-for-profit industry superfunds continue on average to outpace their bank-owned competitors, the latest independentratings agency data shows.
According to the monthlySuperRatings SR50 Balanced Indexdata, industry super funds have on average outperformed bank-owned retail fundsby 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 Australiapublic affairs director, Matt Linden, said the results highlighted the strong linkbetween business model and member returns.
"Industry super funds send allprofits back to their members, and this is reflected in better retirementsavings returns," said Linden.
"Bank-owned retail fundsserve two masters, splitting returns between shareholders and members".
"Two per cent doesn’t seemlike much, but over a lifetime it may add up to tens of thousands of dollarsmore – or, sadly, less - at retirement," he said.
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. ---
