Analysis by Industry Super Australia indicates that the superannuation funds of bank staff – of ANZ, NAB and CBA – consistently outperform the super fund those banks are selling to retail customers.
“Bank staff can count themselves lucky they’re members of ‘in-house’ bank corporate super funds rather than the retail funds they have to sell to the public,” said Industry Super Australia (ISA).
“An analysis of the latest official data shows that over a ten-year period the Commonwealth Bank’s not-for-profit corporate staff fund outperformed by 2.8% per year on average one of the largest retail super funds it recommends to customers.”
This is based on comparing the 10 year average rate of return for Commonwealth Bank Group Super to Colonial First State FirstChoice Superannuation Trust. According to the same analysis the ANZ Australian Staff Superannuation Scheme outperformed the OnePath Masterfund by 2.0%. The National Australia Bank Group Superannuation Fund A outperformed the The Universal Super Scheme by 1.5%.
“These differences will be of deep concern to policy makers and the general public,” said Industry Super Australia chief executive David Whiteley.
“Clearly these institutions have the capacity to deliver better returns to members of the public, but their need to deliver profits to shareholders may be a stumbling block”.
“The banks should explain how it is the super funds for themselves can outperform the super funds they sell to the public so considerably.”
“The three million members of these public offer funds deserve to know whether the banks are putting the interests of shareholders before fund members.”
The Industry Super Australia analysis is based on APRA’s Annual Fund-level Superannuation Statistics for June 2016. ISA notes that the analysis is “not endorsed by APRA”.