Industry Super Australia have commissioned SuperRatings to undertake the research and modelling for use in some of its advertisements.
SuperRatings is a ratings, research and consulting company that specialises in analysing super funds, their investment returns, fees and the relative benefits they offer.
The Net Benefit Model, prepared by SuperRatings, calculates the variance in earnings and fees between HESTA and retail super funds (also known as retail master trusts), over different time peiods, with the default comparison being the 15 years to 30 June 2019.
Sample set: the sample set used in the modelling contains HESTA and the retail super funds with a 5, 10 and 15 year performance history which are actively tracked by SuperRatings, including superannuation investment products that are open and those that are closed to new members but continue to hold assets.
|Timeframe||1 yr||3 yr||5 yr||7 yr||10 yr||15 yr|
|Retail super products||166||147||133||84||67||44|
3.5% per annum.
Performance (Net Benefit) modelling is based on actual reported returns over the stated period.
When are investment returns credited to members’ accounts?
Superannuation Guarantee Contribution
The Superannuation Guarantee rate used for each year's calculation is in accordance with the Superannuation Guarantee (Administration) Act. The modelling assumes no salary sacrifice or voluntary contributions.
When are contributions assumed to be made?
Quarterly in arrears (i.e. the first contribution is made 3 months after joining the fund).
When are fees assumed to be deducted?
A tax rebate of 15% is assumed on fees deducted from members’ accumulation accounts.
2.5% per annum.
All fee information is taken from the sample funds’ product disclosure statements or other formal disclosures at the end of each year in the calculation. Contribution fees, entry fees, exit fees, additional adviser fees or any other fees charged are excluded from this model.
No deductions are made for insurance premiums.
Industry Super Australia Pty Ltd ABN 72 158 563 270 Corporate Authorised Representative No. 426006 of Industry Fund Services Ltd ABN 54 007 016 195 AFSL 232514.