POWERED BY MOMENTUM MEDIA
ISA talks up collaborative, large scale investing
Industry Super Australia (ISA) has attributed the outperformance of industry superannuation funds to their "collaboratively investing in large scale, long-term infrastructure projects".
The attribution has come from ISA chief executive, David Whiteley who has used the latest data released by SuperRatings to defend current default superannuation arrangements as providing strong consumer protection.
He said the latest SuperRatings' monthly data had shown that, on average, industry super funds had recorded a superior performance of more than two per cent over the last 12 months in a volatile market.
"The reliable outperformance of industry super funds over bank-owned funds stems from a number of factors, in particular a business model that returns all profits to members and the innovative approach of collaboratively investing in large scale, long-term infrastructure projects that boost the economy and produce solid, strong net returns," Whiteley said.
"The chronic underperformance by bank-owned super funds highlights concerns over the banks' vertically integrated business models which continue generate huge profits while delivering lower returns to their superannuation members," he claimed.
"The ‘for-profit' culture reflected in the banks' business strategy and sustained underperformance raises questions of the appropriateness of their involvement in superannuation, given super is a mandatory savings system central to Australia's long-term economic and social prosperity," Whiteley said.
"Amid calls for a royal commission into a multitude of financial sector scandals, the big banks must be held accountable for their practices and explain the cause of their chronic underperformance."
He claimed the SuperRatings' results reinforced the need for "a safety net of high-performing default super funds to ensure members' retirement savings are being maximised — a key objective of our super system".
"Default super arrangements for the millions of Australians who choose to rely on this system should provide strong consumer protection," Whiteley said.
"The default system should only include funds with a demonstrated track record of strong performance and exclude the underperformers.
"Default fund members should have peace of mind that their savings will be shielded from poor net returns, ticket clipping and inflated related party transactions."
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(%)
