Frydenberg notes industry fund among under-performers

Federal Treasurer, Josh Frydenberg has refused to concede that industry funds are necessarily better performers than retail funds, arguing that Productivity Commission (PC) determined otherwise.

Speaking on radio about the Government’s continuing effort to address superannuation fund governance issues, Frydenberg also brushed off suggestions the Government was intent on removing union officials from super fund boards.

“There is a role to be played obviously for those employee representatives,” he said. “What we’re focused on is more transparency in relation to the superannuation system and more governance.”

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With respect to the relative perform of industry funds, Frydenberg said the PC had looked at the issue and “they identified that there were 42 underperforming funds and the majority of them actually were industry funds by number, but actually by value the majority were retail funds”.

“So, there is underperforming funds at both the industry and retail level,” the Treasurer said.

Frydenberg said it was up to superannuation fund members to vote with their feet to put their money where they believed they would get the best return.




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To be completely truthful and accurate the header for this story should have been "Frydenberg notes industry funds and retail funds among under-performers."

Cue the trumpets, union zealot and industry fund champion Richard Hedware rushes yet again to their defence, with a derogatory comment on retail super... yawn, this is getting boring and so predictable.

Given tenor of your defensive comments, then you must agree with me that the header was misleading.

Misleading and Industry Super go hand in hand Hedware. Please do some real research - not just briefings and TV ads as it makes you look uninformed.

There's been consistent and persistent research by leading people and organisations that show, using various criteria, that most retail funds need to do better. Even the Treasurer and current responsible minister are saying that.

Consistently poorly performing funds, be they retail or industry, must be forced to merger with better performing funds, be they retail or industry. If industry funds' trust deeds get in the way of mergers with better funds, then the deeds must be overruled by regulation or legislation if necessary. The same impediment is not in the way of retail funds.

BTW the header is not a true reflection of the Treasurer's remarks. Just in case you missed the point...

"Frydenberg said the PC had looked at the issue and “they identified that there were 42 underperforming funds and the majority of them actually were industry funds by number, but actually by value the majority were retail funds”.

“So, there is underperforming funds at both the industry and retail level,” the Treasurer said.

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