Data released this week by the Australian Prudential Regulation Authority shows industry super funds have continued to outperform ‘for profit’ retail competitors over the short, medium and long term.
The latest APRA quarterly data for the period to the end of December 2015 shows that, on average, industry super funds have outperformed retail super funds by 1.86 per cent over the past 11 years.
Since December 2004, industry funds have achieved average annual net returns of 6.92 per cent versus 5.07 per cent from retail super funds.
Meanwhile, data from research firm SuperRatings shows a difference of more than 2 per cent over 10 years, in comparison to bank-owned funds.
“The outperformance of industry super funds, which return all profit to members, adds up to a difference of many thousands of dollars in super savings,” said David Whiteley, chief executive of Industry Super Australia.
“That’s why it’s vitally important to choose a high-performing fund that will work hard to invest your retirement money.”
Mr Whiteley said these figures highlight the ongoing underperformance of bank-owned and retail super funds, which take a profit and consistently deliver less to members.
“While the banks chase profit at members’ expense, industry super funds are focused on getting the best super returns for Australians by making deep, long-term investments especially in infrastructure, which in turn strengthen the foundations of Australia’s economy,” he said.
The APRA data also shows that total superannuation funds in Australia topped $2 trillion by the end of last year, up from $1.93 trillion the year before.
Total member super contributions in the 12 months to December 31 rose 3.4 per cent to $103.9 billlion from $100.5 billion.
DISCLOSURE: The New Daily is owned by a group of industry super funds.