Tuesday, August 9th, 2011 - Your Money Magazine
Big brands don’t necessarily mean big returns in the superannuation sector. While ‘for-profit’ super funds have enormous market share and advertising clout, they may not be best for delivering consistent, low-cost returns to members.

Research by Your Money Magazine into the performance of for-profit and non-profit industry funds found the for-profit sector is definitely lagging behind. Over three, seven and 10 years, most of the top-performing super funds in the for-profit sector are still tracking below leading industry funds in terms of their ability to deliver ‘above the pack’ returns to members.

Managing editor Jackie Pearson said the results indicated some fund members could find a better deal elsewhere.

“Australian super members can choose which fund they want to invest with. So if your current fund is under-performing, remember you don’t have to stick with it and don’t be afraid to shop around,” said Pearson.

However, being a long-term investment, a lack-lustre performance by your super fund over a short period does not necessarily mean you should be turning your back on your fund. And the array of investment options available to members of big brand funds could be a key reason to stay put.

“The investment choice and flexibility available to members of for-profit funds is a key competitive advantage,” said Pearson. “The best for-profit funds as listed in the current issue of Your Money Magazine have been chosen based on performance consistency over different time periods and different investment options so if you’re looking to compare funds, it’s a good place to start.”

With significant reforms expected in 2012 following a major Federal Government review of the super system, superannuation will likely attract more attention in coming months as members seek to ensure their current fund does deliver.

For more information on how the different funds performed, as well as tips on how best to manage your super, pick up the latest issue of Your Money Magazine. On sale at leading newsagents and online at www.yourmoneymag.com.au.

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Your Money Magazine is for all Australians looking to increase their personal wealth and achieve the lifestyle they desire. Your Money Magazine’s key focus is to educate the Australian public about money management by providing down-to-earth, easy to comprehend content, detailed product comparisons across a range of categories, and recommendations from some of the country’s leading industry experts.

Combining in-depth research and product comparison tools with shrewd financial education materials, Your Money Magazine takes a unique place in the Australian market allowing readers to not only compare existing products but to educate themselves and take decisive action all in one place.

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Lisa Narroway
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