Industry and retail funds snipe over fees and benefits

Industry Fund Services, which represents not-for-profit industry funds, published new figures from SuperRatings yesterday which showed that industry fund members would be 32 per cent better off than those in retail funds, based on existing fee structures, even if industry funds only earned the same returns as any other fund. SuperRatings concluded that, “Over a 40-year working life, this could mean having $158,843 more at retirement measured in today's dollars, which could equate to $426,502 in future value (if inflation is taken into account).” A rival report from commercial funds, represented by the Investment and Financial Services Association, and prepared by Chant West Financial Services, argued that while fees were important, other factors, such as a wider range of investment choices, call centre access and user-friendly websites gave commercial funds the edge over industry funds.