Industry Fund Services (IFS) has followed up the recent release of Rainmaker data supporting the benefits of industry superannuation funds with data compiled by SuperRatings.
The data, backed by research commissioned by IFS, claimed that, on average, industry super fund members received more dollars in their accounts after fees and taxes.
The research appears to be based on the same ‘net benefit to members’ data used by the industry funds to back their choice of superannuation fund television advertising campaign.
Industry Funds spokesman and chief executive of Cbus, Sandy Grant said the industry funds believed the ‘net benefit to member’ information was a vital part of the total package of information needed by members to make the right choice.
A number of commentators including Sydney-based analyst, Warren Chant have questioned the validity of the ‘net benefit to members’ calculations being used by the industry funds.
Chant, a principal with Chant West, said that while industry funds could justifiably claim an advantage, in the real world the magnitude of the advantage was much less than was being portrayed in their choice of superannuation fund advertisements.
The Chant West analysis said that asset allocations rather than fees have been the main differentiator between industry superannuation fund and retail master trusts over recent years and that the claims being used by industry funds based on ‘net benefit to members’ could mislead members of retail master trusts.
