Bottom 10 superfunds

The worst default super funds revealed

No-frills superannuation funds run by the Commonwealth Bank, Westpac and the maritime union are among the worst performers, according to Industry Super Australia, which has urged the regulator to swiftly lift standards.

ISA used Australian Prudential Regulation Authority (APRA) data to rank MySuper products based on their returns over the past five years.

Industry Super acting chief executive Matthew Linden said most MySuper members were obtaining "exceptional outcomes", especially if they were in industry funds, which had average annual net returns of 8.2 per cent.

 

Who would have thought that retail funds with vested interest will under perform ...

 

Yeah but that is over the last 5 years riding on top of generally good market returns. God knows how they did when things were bad.

 

The first retail fund with respectable returns over 5 years is ranked at #15 then #26 way down the rankings.

All but 4 in the top 26 are industry funds (2 retail/2 public sector make up the rest). And the retail funds want more regulation over the industry funds. They are obviously not lobbying the government hard enough.

I'm a tad confused with the table though, most of the largest funds have $B not $M under management.

 

Yeah, someone compressed the table or something. Supposed to be 1000's of million or simply billions.

 

I will stick with my SMSF with a total return of 13.89% pa for the last five FYs

 

Gross or net? Either way, well done.

 

Portfolio of direct shares (including LICs) as reported by Sharesight.

 

So based on the principal of "regression to the mean"... We should be moving out super over to them?

 

Anybody have any tips for someone wanting to move from REST to Hostplus that has say only a tiny balance at this stage.

 

Don’t know where they got their figures from.

Our 5 year balanced super fund return (accumulation) was 8.75% which would put them at #4 in the top funds list. No mention of them at all in that table. As we are in the tax free income stream, our return was higher.
Marg

 

Contact Hostplus if that is your chosen fund.

They will help you with the paperwork to move funds over to them.
Marg

 

I think the report is about the new default MySuper "Super Funds for Dummies" rather than ones we choose to use.

 

List is for default accumulation funds. Pension funds are reported separately as they have higher liquidity requirements and performance may differ.

 

I know.
That is why I quoted the return for the accumulation balanced fund. The 10 year return was even higher.
Marg

 

Contact Hostplus and ask them to help you. ( Not REST)

 

Also do not have to pay 15% tax on earnings , I though, So returns should be higher, if investments where the same as a accumulation fund with same investments...

 

So is it a good idea to change from first state super to hostplus?

 

It depends on your circumstances. Seek financial advice.