Subscribe to our newsletter

Industry super funds outperform bank funds

Industry super funds outperform bank funds

Killian Plastow
— 1 minute read

Industry superannuation funds have achieved 3.45 per cent over the 2015-16 financial year, outperforming retail funds by 1.71 per cent according to data from SuperRatings.

The data shows industry funds outperformed bank-owned super funds by around 2.2 per cent over the past 10 years, and Industry Super Australia deputy chief executive Robbie Campo says the “sustained” outperformance can be attributed to “governance arrangements” and differing investment approaches.

Ms Campo says the approach industry funds have toward asset allocation has assisted in improving member returns in the current economic environment.

“In the current difficult investment climate these factors have served members’ interests well,” she said.

Recently, Chant West director Warren Chant noted that superannuation returns for the most recent financial year were significantly lower than the previous three years, a fact supported by the SuperRatings data, which puts the rolling three-year returns for industry funds at 8.76 per cent, markedly higher than this year’s average return.

Returns for bank-owned super funds for the 2015-16 financial year were 1.74 per cent.

 

Read more:

ASIC proposes new risk management guidance

Cost of delayed reform in the billions

Emerging market bonds offer more value: Brandywine

Asian emerging markets increasingly vulnerable to external risk

Satisfaction with banks reaches three-year low: Roy Morgan

 

Industry super funds outperform bank funds
investordaily image
ID logo

related articles

promoted stories