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The Truth about Industry funds...finally

Discussion in 'Superannuation, SMSF & Personal Insurance' started by AsxBroker, 10th Jun, 2009.

  1. AsxBroker

    AsxBroker Well-Known Member

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    Looks like the truth may finally be here...

    Alternative assets boost super - Investment - Money - Business - Home
     
  2. FinSpec

    FinSpec Member

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    I don't think that the debate on this is ever going to go away...
     
  3. GregR

    GregR Reid Consultants

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    Berwick Vic
    Chart on various type of Super Fund Returns

    Historical perspectives are often useful. One chart I came across from APRA on superfund returns to June 2008 was clearly showing industry funds outperforming retail funds over both bear and bull markets since the 1999 period shown.
    The chart and details can be found at:
    Annual Superannuation Publication
     

    Attached Files:

  4. AsxBroker

    AsxBroker Well-Known Member

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    Only time will tell.
    It will be interesting to see the changes in that graph after June 2012 when FPA planners remove commissions. Australia's largest Industry Super fund haven't released their full year results but looking at their performance page some of their funds are way off their benchmark (in a bad way).
    As FinSpec said the debate will continue for a long long time.

    Cheers,

    Dan
     
  5. greygoose

    greygoose Member

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    industry fund members are going to get a nasty shock when all the unlisted assets are revalued. the main point that never gets brought up in this debate is that the fact that in the real world, things are not equal between industry funds and retail funds in one key area. service.

    ok so an investor in an assertive portfolio may make slightly more over the long term as opposed to the same in a retail fund if you work the numbers enough. the more likely result is that this investor never has any idea where his super is invested and what it means, so for 20 years he's sitting in a capital guaranteed fund earning 2%. meanwhile his workmate has a personal super which he sets up with an adviser, has his account balance invested in a portfolio that matches is risk profile, has yearly (half yearly, quarterly, whatever) reviews included in the cost of this, and more than likely has much better levels of insurance cover.

    if your a gun investor, or just halfway interested, like most people on this site, then there are definately advantages to going with an industry fund. the reality is that most people either aren't interested, or aren't smart enough to get their head around how it works, so they are never going to maximise the potential for their super
     
  6. AsxBroker

    AsxBroker Well-Known Member

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    Hi GreyGoose,

    Very true, though that doesn't make a good tv ad.
    Straightforward things like advice on transition to retirement, salary sacrificing and government co-contribution aren't taken into account for Net Member Benefit.

    Cheers,

    Dan