Refuting the Productivity Commission’s claim earlier this year that Australian Prudential Regulation Authority (APRA) regulated funds outperform self-managed superannuation funds (SMSFs), Class has released data that it says more accurately compares the two fund types to put the latter on top.
Class said that the Commission utilised inconsistent formulae, as the Australian Taxation Office’s (ATO’s) Return on Assets (ROA) for SMSFs and APRA’s Rate of Return (ROR) for its funds were misleading when compared to each other.
The software company’s like-for-like analysis of ROA showed a 5.59 per cent return for SMSFs versus 4.98 per cent for APRA funds, while comparison of ROR data showed average returns of 6.71 per cent for SMSFs and 5.58 per cent for APRA funds.
“The competing approaches used to report super performance deliver significant differences and given the dual regulators are responsible for an industry worth over $2.5 trillion, it’s time for APRA and the ATO to agree on a consistent approach to fund performance reporting,” Class chief executive, Kevin Bungard, said.
Also worth noting was that the 6.71 per cent average return for SMSFs outperformed the Productivity Commission’s benchmarks for both listed and listed plus unlisted assets.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
Add new comment