There are reasons super funds aren’t lending more to business

Industry Super Australia argues there are reasons superannuation funds aren’t lending more to business, pouring cold water on calls from big business for increased lending. However there might be a case for lending to small and medium businesses.

The last year has seen big business call for super funds to lend more to Australian business. In November 2017 the Australian Financial Review and Visy hosted the Superfunds Round Table – the main take away of which was a push from business leaders and financiers for increased super fund lending. This was followed by a series of articles in the AFR. Read more...

Bernie Dean to replace David Whiteley at Industry Super Australia

Bernie Dean will replace David Whiteley as Chief Executive of Industry Super Australia.

In April it was announced that David Whiteley would be leaving Industry Super Australia to take up a position with IFM Investors. Bernie Dean will take over as Chief Executive starting on 1 September 2018.

“Bernie assumes the role after a long career working with government, unions and employer groups to improve the lives of working people,” said a statement by Industry Super Australia announcing the appointment. Read more...

Industry Super Australia chief David Whiteley to leave organisation

Industry Super Australia Chief Executive David Whiteley will soon leave the organisation to take up a position with IFM Investors, it has been announced.

Industry Super Australia (ISA) Chair Peter Collins said that David Whiteley had turned the organisation into the most effective financial services advocate during his 12 year tenure.

“Under David’s stewardship, ISA has developed into what is indisputably the best policy, lobbying and campaign organisation in our industry, perhaps the best in any industry,” Mr Collins said. Read more...

Industry Super Australia expands comparisons in ‘Compare the Pair’ campaign

Industry Super Australia has expanded the comparisons in its ‘Compare the Pair’ campaign, a move which it says hands more power to consumers.

The updated ‘Compare the Pair’ campaign – comparing performance in industry versus retail funds – now includes comparisons over 3 and 15 years, in addition to the existing 10 years.

“The changes mean that consumers are now able to see super fund performance over additional time periods – including that of some bank-owned retail funds with only a limited performance history,” said Industry Super Australia (ISA). Read more...

SMSFs with under $2 million “not viable”, LRBAs must be abolished: ISA

SMSFs with less than $2 million in assets are “not viable retirement savings vehicles”, says Industry Super Australia in a new report.

Industry Super Australia (ISA) says members in SMSFs with less than $2 million are worse off than members in APRA-regulated funds, based on an analysis of the ATO’s recently released 2015/16 statistical overview of SMSFs.

Industry Super chief economist Dr Stephen Anthony said the data suggested SMSFs work for high wealth individuals, while casting doubt over the suitability for most Australians. Read more...

Consumers “bewildered” by thousands of super fund options

Consumers are “bewildered” by the thousands of superannuation options says Industry Super Australia, which has accused the banks of “overloading” customers with choices.

Industry Super Australia has released new research indicating that the large range of super options is making it difficult for consumers to decide which is appropriate.

63% of people surveyed said that the range of superannuation produces makes it hard to decide which one is right for people like them.

63% of people also said the banks have a track record of offering a variety of products designed to make it hard to get a clear idea of which is the right one to choose. Read more...

Industry Super Australia launches third ‘Compare the Pair’ campaign

Industry Super Australia has launched the third generation of its ‘Compare the Pair’ advertising campaign.

The organisation says the campaign aims to “remind Australians what to look for when choosing a superannuation fund”. As with earlier Compare the Pair campaigns, the ads are based on a comparison between average industry super fund and retail super funds, while warning that past performance is not a reliable indicator of future performance.

The campaign consists of two new Compare the Pair adverts, to air across TV, outdoor, digital and social platforms. Read more...

Retail super funds failing social licence with underperformance: ISA

Industry Super Australia has accused retail super funds, or bank-owned super funds, as ISA refers to them, of failing to meet their social licence with long-term underperformance.

ISA points to SuperRatings data, which shows that the industry super fund balanced investment options have, on average, outperformed retail balanced options by 2.12% over the last 10 years, to June 2017 (5.14% to 3.02%).

“The growing gap between industry fund and bank-owned fund performance should be ringing alarm bells for members of bank-owned super funds and the Government,” said Industry Super Australia chief executive David Whiteley. Read more...

Banks “bamboozling” customers with too many superannuation choices

The big banks are trying to “bamboozle” customers with too much choice of superannuation investments, Industry Super Australia (ISA) has argued.

In the latest salvo in the ongoing battle between industry and retail super funds, ISA says that “less is best” when it comes to investment choices in superannuation.

An analysis of ten years of APRA statistics by ISA shows that the best performing super funds are those with a main default investment option and a small number of other investment options. Read more...

Retail super funds have 29% of assets but collect 50% of fees

Retail superannuation funds are collecting fees far higher than their assets and performance should suggest, according to Industry Super Australia (ISA).

Retail funds account for 29% of superannuation Funds Under Management (FUM), but collect 50% of superannuation fees, according to research commissioned by ISA.

This compares to non-for-profit (industry) funds which have 42% of FUM and collect 42% of fees. Both industry and retail funds have 45% of super fund members each.

The report says the high proportion of superannuation fees being paid to retail funds – in particular those owned by the Big 4 banks, Macquarie Bank and AMP, which account for 40% of all superannuation fee revenue – is “significant” because of the performance gap of these funds. Read more...