The Federal Government’s attempt to dismantle industry superannuation funds member-focussed model will be to the detriment of retirement savings, Industry Super Australia (ISA) believes.
ISA pointed to SuperRatings monthly data that found on average industry funds had outperformed bank-owned funds by more than two per cent over 10 years.
ISA chief executive, David Whiteley, said: “There is no doubt that the governance of industry super funds is a key driver of their superior outperformance”.
"Member-first governance and culture is the reason industry super funds have consistently outperformed bank-owned super funds,” he said.
Whiteley noted that the Government had not advanced any evidence that their proposals would improve returns for 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.
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