No Logic to Changing Industry Super Funds Following Latest Performance Data

MELBOURNE, Australia, Feb. 2 -- Industry Super Australia issued the following news release:

New performance figures call into question bank lobbying efforts to dismantle the successful not-for-profit industry super fund governance model, says Industry Super Australia.

At the fund level, comparisons between industry super and retail and bank-owned funds reveal a stark performance contrast.

ISA analysis of annual APRA data show that over the ten years to 30 June 2016, industry super funds have delivered returns to members of 5.4%, compared to retail and bank-owned super fund returns of 3.6%.

This outperformance means industry super fund members could be tens of thousands of dollars better off in retirement.

ISA analysis also shows that for public offer funds with reported ten year returns, 13 of the top 15 are industry super funds. All 15 of the bottom 15 performing public offer funds are retail funds.

Industry Super chief executive David Whiteley said ISA analysis of the APRA figures underscored the absurdity of changing super laws to suit the vertically integrated business models of the major four banks.

"Millions of Australians entrust their savings to industry super funds for good reason".

"The governance structure, investment beliefs and member-first ethos of industry super funds offer Australians the best chance of a decent retirement.

"These performance figures are a timely reminder of the need to place public policy imperatives ahead of the commercial imperative of the banks.

"Handing the default super system to the banks could ultimately mean many Australians will be forced to work longer or retire with less", said Mr Whiteley.

Industry Super Australia provides policy, research and advocacy on behalf of 15 not-for-profit Industry SuperFunds who are the custodians of the retirement savings of five million Australians.

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