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‘For-profit’ culture weighs down super system
The "for-profit" culture enshrined in the banks' business model is weighing down the superannuation system, Industry Super Australia believes.
Pointing to the latest SuperRatings' data, the body's chief executive, David Whiteley said not-for-profit industry super funds continued to outperform for-profit bank-owned funds in the short, medium, and long-term.
"The habitual underperformance by bank-owned super funds is a drag on member returns and national savings, they are letting the Australian public down," Whiteley said.
"The ‘for-profit' culture enshrined in the banks business model is weighing down the super system. This is the same culture that has overseen countless financial scandals and a loss of trust in the banking sector. It is time that government acted and investigates this underperformance."
Whiteley said while banks chased profits at members' expense, industry funds were focused on getting the best super returns by making deep, long-term investments especially infrastructure, which in turn would strengthen the foundations of the economy.
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The Super Members Council (SMC) has called for streamlined super reporting to cut costs, boost investment flows, and strengthen retirement outcomes.
AustralianSuper’s reliance on unlisted assets dragged on performance over the past year, as the rally in listed markets left funds more heavily weighted to equities outperforming their peers.
IFM Investors has urged for government-industry collaboration to accelerate projects, unlock capital, and deliver long-term returns for Australians.
With super funds turning increasingly to private credit to lift returns, experts have cautioned that the high-yield asset class carries hidden risks that are often misunderstood.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
just goes to prove that the industry super funds are the way to go - run mainly for members benefit instead of greedy banks, retail funds etc