Mercedes

A- A A+

Royal commission prepares for super industry showdown

Adele Ferguson  |  10 July 2018  |  News

As the royal commission prepares for a showdown with the $2.6 trillion superannuation industry on August 6, it has assigned a team to trawl through submissions, meet key players and comb various reports including the Productivity Commission's landmark draft report into super.

There are a lot of rabbit warrens the royal commission could head down, the most popular being the political wars of industry funds and retail funds.

Retail funds have chronically underperformed industry funds over the past 12 years by almost 2 per cent, according to the Productivity Commission's draft report. But the real scandal is that one in four funds – retail, industry, corporate and government funds – persistently underperform and they have been allowed to get away with it.

Put simply, entrenched underperformance is system-wide and is costing Australians a fortune.

In the default segment of the market, the Productivity Commission's draft report spearheaded by Karen Chester identified 26 funds as persistent underperformers. They include 12 retail funds and 10 industry funds, which represent $62 billion of assets and 1.7 million member accounts.

Read More: https://www.afr.com/business/royal-commission-prepares-for-super-industry-showdown-20180708-h12ebp

 

 



Submit a comment

Word Count: 0

Mercedes


Quick Poll

Which stock will rank best
BHP
CBA
GOOGL
AAPL
MSFT

 


Similar articles from News

Will journalism be compromised?

Kelly Hughes. 27/07/2018.

In a historic deal, Fairfax Media will merge with Nine Entertainment by the end of 2018 to create a media giant valued at $4.2 billion dollars.


Fairfax, Nine announce plan to merge in $4b deal

SMH. 26/07/2018.

Fairfax Media and Nine Entertainment have announced plans to merge by the end of 2018 in a deal they say will create Australia's largest integrated me..


Mercedes