Certified Financial Planner professional, Matt Hern has three times been awarded as one of Australia's Top 50 Financial Planners by The Australian Financial Review Smart Investor. He is passionate about guiding you on the right financial choices to achieve what you really want. Matt Hern is an Authorised Representative of Charter Financial Planning Limited AFSL 234665. All information is general advice only.

3 responses to “Industry super funds are under-performing”

  1. Karl

    It would be interesting to know what proportion of retail or corporate funds are under performing. An APRA report released in January 2011 stated:

    “In the ten years to 30 June 2010, the average ROR for large funds was 3.3 per cent per annum. Public sector funds recorded an ROR of 4.2 per cent per annum, corporate funds 3.9 per cent per annum, industry funds 3.9 per cent per annum and retail funds recorded 2.5 per cent per annum.”

    Considering the difference in fees, it would appear that industry funds have over the last ten years on average out performed retail and corporate funds.

    Perhaps SMSFs (or at least indicie funds) are the answer considering that the S&P Indices vs active funds scorecard found that the benchmark out performed roughly 71% of active Australian share funds over 5 years….

  2. Karl

    I understand re the buckets and that it is difficult to compare. I guess my point was that while 24% of industry funds may under perform over the long term, what proportion of retail / corporate funds under perform over the long run? Performance is relative, so it would have been useful to compare this under performance in industry funds with alternative funds to give the 24% some context…

    The APRA stats, while not overly useful, do seem to show that the industry funds are not performing much worse (if in fact they are worst) than retail / corporate funds. Although the devil is in the detail.

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