Unions received over $18 million in fees from super funds in last four years

Over $18 million was paid from superannuation funds to trade unions between 2013/14 and 2016/17 according to the Institute of Public Affairs, in a claim labelled by the ACTU as “wildly misleading”.

The Institute of Public Affairs (IPA) has released a report titled Rivers of Gold: How the Trade Union Movement is Funded by Industry Super. Analysis of public information in the report finds that over the last 4 financial years $18,438,516 was paid from super funds to trade unions as directors fees. This compares to $2,076,756 received by employer and industry groups and $5,633,099 by other third parties. Read more...

Industry super fund members better off by $2,000 a year

Industry super fund members are around $2,000 better off a year compared to being in a retail super fund, according to the latest ‘Compare the Pair’ figures.

Updated modelling, conducted by SuperRatings, for Industry Super Australia’s Compare the Pair campaign finds someone earning an average salary would have a super balance $20,871 higher over the last 10 years if they were in a industry fund instead of a retail super fund.

Industry Super Australia says that industry funds consistently out-perform retail super funds, “which are generally owned by the big banks”. SuperRatings models the average performance of the main balanced investment option of industry funds against the average performance of retail funds, over the last ten years. The latest modelling shows that on average the 16 industry super funds had higher after-fee returns than the average of the 77 retail funds modelled. Read more...

Bills restart battle between industry and retail super funds

Two fronts in the battle between industry and retail super funds have been revived by the introduction of Government Bills to the Parliament to change the governance and reporting requirements on super funds.

The Government has introduced two Bills to the Parliament to enact its super fund governance changes – including at least one-third independent directors – and ‘transparency and accountability’ policies.

Industry Super Australia (ISA) said the Government Bills risk dismantling the not-for-profit super fund sector, while giving retail funds a “leave pass” on transparency and disclosure. Read more...

Industry-retail fund performance gap widening in “alarming” trend

The performance gap between industry and retail superannuation funds is widening, a development which Industry Super Australia describes as “alarming”.

Industry Super Australia conducted an analysis of the recently released APRA statistics up to June 2017 and found that the margin by which industry super funds are outperforming retail super funds is increasing. Over one year industry funds outperformed retail funds on average by 2.89% (10.7% to 7.8%), 2.44% over three years and 2.13% over five years. This is based on a comparison of MySuper products. Read more...

Super industry now split evenly between industry, retail and SMSF: KPMG

Industry super funds have caught up with retail funds in terms of assets, so superannuation is now split one-third industry, retail and SMSF. However more consolidation of larger funds is required, according to KPMG.

“Industry funds have caught up with retail funds over the past decade, and now there is an even split between the two at the top end of Australia’s super system,” said KPMG, with the release of the KPMG Super Insights Dashboard and Report.

“But while large funds are getting larger, there are still too many smaller ones which need to be consolidated.” Read more...

70% think all super funds should be run on not-for-profit basis

70% of Australians think that all superannuation funds should be run on a not-for-profit basis, according to an Essential poll commissioned by Industry Super Australia.

The poll also found that 69% have either ‘some trust’ or ‘a lot of trust’ in the views of industry super funds ensuring the superannuation system works in the best interest of ordinary Australians. 22% said industry funds weren’t trustworthy. This compares to 38% thinking the government was trustworthy on the issue (53% not trustworthy) and only 31% thinking the four major banks were trustworthy (61% not trustworthy). Read more...

Satisfaction with industry super funds grows

satisfaction with industry superannuation funds grows, retail super fundsConsumer satisfaction with industry superannuation funds continues to grow, according to a recent survey.

“Industry superannuation funds continue to out-do retail funds for satisfaction with financial performance, with a 60.6% score in the six months to April, compared to 56.9% for retail funds,” said Roy Morgan Research.

According to the same survey the satisfaction level with industry super funds has grown over the last 12 months by 1.5%. Over the same period satisfaction with retail super funds has decreased by 0.1%. Read more...

Industry super fund outperformance figures questioned

Chant West, Industry Super Australia (ISA), industry super fund outperformance retail super fund, 'bank owned funds'Industry Super Australia is overstating the extent to which industry super funds outperform retail funds, superannuation research and consulting firm Chant West has claimed.

“Almost every time a performance survey is released it is quickly followed by some commentary from ISA [Industry Super Australia] extolling the superior returns of industry funds over what it calls ‘bank-owned’ and retail competitors,” said analysis by Chant West.

The firm acknowledges that industry super funds have been “strong performers over many years”, but argues that claims of outperformance have been overstated. Read more...

ISA asks if retail super funds can balance members and profits

industry super funds, retail super funds, outperformance, Industry Super AustraliaIndustry Super Australia has questioned if retail superannuation funds can balance the interest of members and shareholders.

The latest superannuation performance statistics indicates industry super funds continue to outperform retail super funds. Analysis by Industry Super Australia of the APRA statistics shows a 1.89% outperformance over the period December 2004 to March 2016.

“These latest performance figures raise a genuine question about whether retail fund trustees can balance the conflict between generating profits for their parent entity shareholders versus the long-term interests of their members,” said Industry Super Australia Deputy Chief Executive, Robbie Campo. Read more...

Industry super funds continue to outperform retail funds

Not-for-profit industry superannuation funds have continued to outperform retail funds over a rolling 10 year time period, by just over 2%, according to an analysis of SuperRatings data by Industry Super Australia,

industry-super-fund-outperformance-jan-2016Source: Industry Super Australia

Industry Super Australia Chief Executive David Whiteley said industry super fund members “can take comfort in these results and should keep their super in good hands.”

“This average difference in performance could translate into a difference of many thousands of dollars in Australians’ retirement savings, so it’s important to choose a high performing fund that will work hard to invest and grow your super,” he said. Read more...