Bank super funds perform best - for their staff

New figures show money is pouring back into superannuation funds as investment returns improve.

Figures from the Australian Prudential Regulation Authority show, out of the top 200 superannuation funds, US investment bank Goldman Sachs posted the best performance - for its own staff.

Its staff fund netted a 9 per cent increase from 2004 to 2012.

Public sector funds were also solid performers.

However, some retail funds, such as industry giant AMP, saw yearly returns for the period below 4 per cent.

The chief executive of the Association of Superannuation Funds, Pauline Vamos, says its hard to compare funds in different sectors to each other.

"The APRA report highlights the complexity of some of the retail providers," she said.

"It is important to understand corporate funds are for many people an excellent choice, often because the employer pays the administration costs, the employer pays the insurance." The Australian Prudential Regulation Authority figures show overall super contributions jumped to their second highest level on record in the 2011-12 financial year.

Pauline Vamos says a change in super contribution rules resulted in a flood of money into funds over the past year.

"People are trying to catch up, they know that the contributions caps are going to be reduced this year, so for those over 50 they could put in $50,000 last year, this financial year its $25,000," she explained.

"Because people are nearing retirement they want to make sure they put in as much as possible." The APRA figures also show self-managed super funds have been among the biggest beneficiaries of an increased flow of money into the industry.

Chairman and founder of Super Ratings, Jeff Bresnahan, says contributions to mainstream super funds over the period were actually fairly flat.

He says self managed super funds now represent a third of the market.

"People are moving away from mainstream super funds into self-managed super funds, which has been happening for probably the best part of over five years," he observed.

"Some of the biggest super funds are now putting in place the equivalent of self-managed platforms within the mainstream super funds and they're doing that in a cheaper and more efficient manner - so hold onto your hats, the next three to five years will be quite interesting to see who wins."

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9360-0.0009-0.09%
    AUDUSD=X
    0.5561-0.0016-0.29%
    AUDGBP=X
    0.6754-0.0028-0.41%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg