Industry Super Network (ISN) has called on the Australian Prudential Regulation Authority (APRA) to begin publishing its superannuation fund league tables immediately, following its concerns over the data that is produced by private ratings agencies.
The recent publication of 2008/09 superannuation returns by private ratings agencies highlighted the need for accurate and timely league tables which used a methodology that both consumers and the industry can have confidence in, according to ISN executive manager David Whiteley.
While the ratings agencies each fill a particular niche in the market, differences in their samples and methodology can generate quite divergent results, he said.
"This often leads to contradictory commentary for consumers. The only consistent outcome from the league tables is that the industry super fund sector consistently outperforms the retail sector."
Whiteley said some ratings agencies appear to be more concerned about publishing their data first rather than having accurate figures.
Furthermore, he said many superannuation funds are not able to provide final crediting rates, which meant they provided either no data or interim data that does not truly reflect their performance.
"Our own research also shows that fund-level performance is very closely correlated with the performance of a fund's default investment option, and therefore an effective measure of the experience of most funds' members," Whiteley said.
"Few would argue that an increased level of engagement from superannuation members is desirable.
"Official, objective performance data is an important step to achieving this goal, by providing clarity about long-term performance for those customers exercising their right to choose their fund."
