Industry Super Australia (ISA) has used new data released by SuperRatings to point to what it says is the underperformance of the "bank-owned super fund sector".
A statement by ISA said industry funds are "outstripping" returns of retail funds over one-, three-, five-, seven- and 10-year periods.
According to superannuation researcher SuperRatings, in the 12 months to 31 May 2015 industry funds returned 12.14 per cent while retail funds returned 10.57 per cent – outperformance of 1.57 per cent.
The outperformance of industry funds over their retail counterparts for the three-, five-, seven- and 10-year periods to 31 May 2015 was 1.64 per cent, 1.96 per cent, 1.2 per cent and 1.96 per cent, respectively, said SuperRatings.
A statement by the ISA said the SuperRatings data showed a "consistent, long-term difference in performance between industry super funds which return all profit to members and bank-owned funds which take a profit out of members’ retirement savings".
ISA chief executive David Whiteley said retail funds are "habitual underperformers".
"This should ring alarm bells about whether their 'for profit' approach is appropriate in our superannuation system. It is costing the public and our economy dearly," Mr Whiteley said.
"At the heart of the governance model of industry super funds is a commitment to return all profits to members. There is no doubt that the governance of industry super funds drives their superior performance," he said.
AMP is planning to reduce its superannuation products and investment options as part of its bid to regain customer trust post-royal commissi...
Catholic Super and Equip are set to enact one of the largest mergers of not-for-profit superannuation funds, with the new body to manage mor...
The prudential regulator has this week released for consultation revisions to its standard on strategic planning and member outcomes for sup...