POWERED BY MOMENTUM MEDIA
Policy makers need to scrutinise bank funds
Policy makers should start demanding answers about why not-for-profit industry superannuation funds continue to outperform bank-owned funds, Industry Super Australia (ISA) believes.
ISA pointed to SuperRatings’ data for the decade ending 31 May 2017 which found that industry funds in the SR 50 Balanced Option outperformed bank-owned super funds on average by two per cent.
ISA public affairs director, Matt Linden, said the two per cent difference could cost $200,000 in savings at retirement for the average earner.
“With pension access tightening, compulsory superannuation is becoming increasingly central to the wellbeing of Australians as they age,” he said.
“This chronic under-performance of retail funds, which hold just over a quarter of all super savings, should be a big concern for forward-thinking policy makers.
“But when it comes to returns on the retirement savings of hard working Australians, the silence is almost deafening.”
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
