POWERED BY MOMENTUM MEDIA
Bank-owned super funds below median: ISA
Three-quarters of public offer bank-owned superannuation fund assets are in bank-owned super funds with bottom quartile performance, according to Industry Super Australia (ISA).
ISA analysed Australian Prudential Regulation Authority's (APRA's) 10-year performance data and said 97 per cent of member accounts in bank-owned public offer super funds had below median returns.
The data also found that three-quarters of all public offer not-for-profit industry super fund assets were in industry funds with top quartile performance and 92 per cent above the median.
ISA chief executive, David Whiteley said the data highlighted concerned over the banks’ profit driven vertically-integrated business models, which seemed to be eroding members’ retirement savings.
“The fact is, running a super fund to profit a parent bank sits very uneasily with the interests of members and the social policy objectives of compulsory superannuation,” he said.
He said it was time for banks to disclose the profit from compulsory super and the regulator to investigate the chronic underperformance of bank-owned super funds.
ISA analysis of the data also said that not-for-profit super funds collectively contributed $42.9 billion (96 per cent) in above median returns in the 10 years to 2016, compared to the $25.4 billion of for-profit funds in below median returns.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
