Bank superannuation funds for staff have outperformed the super funds they sell to the public, according to Industry Super Australia (ISA).
ISA said over a ten-year period Commonwealth Bank’s not-for-profit corporate staff fund outperformed by 2.8 per cent per year on average on one of the largest retail super funds it recommended to customers.
Also, ANZ’s not-for-profit staff super fund outperformed one of its retail super products for the general public by two per cent on average.
ISA chief executive, David Whiteley, said: “These differences will be of deep concern to policy makers and the general public”.
“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,” he said.
“The banks should explain how it is the super funds for themselves can outperform their 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.”
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
well, of course we all knew that would be the case, its just like industry super fund V retail super fund
Add new comment