A statement by industry fund lobby group pointed to the latest performance data from researcher SuperRatings, which found the median industry superannuation fund outperformed the median retail fund over one, three, seven and 10 years to 31 January 2014 (industry and retail funds were on a par for rolling five-year returns).
According to the SuperRatings data, industry funds returned median rolling returns of 7.3 per cent in the 10 years to 31 January 2014, compared to a 5.6 return for retail master trusts in the same period.
ISA chief executive David Whiteley said the SuperRatings results "strengthen the case for using net returns as a key determinant in the selection of default funds for employee".
“Industry SuperFunds are prepared to compete on the basis of long-term net returns, which is why they have advocated for long-term net performance as the key consideration in the selection process for default funds," he said.
"Retail super funds have advocated a position that would exclude long-term performance as a relevant factor for selecting default funds.
“The cost of underperformance by retail super funds to national savings is estimated to be $97 billion for the period July 1996 to June 2013. For individuals, underperformance means lower super savings."
