text size

Small is beautiful: First Super outperforms funds 50 times larger

August 30th, 2018

First Super has delivered another year of robust investment performance for its members, reporting annual returns of 10.68% in the Balanced (default) option, 11.90% in Growth, and 13.91% in Shares Plus*.

First Super’s cash option also performed strongly, returning 2.31% over 2017/18.

The Growth option return saw First Super outperform most other superannuation funds in the market, including industry funds 50 times larger in funds under management.

First Super CEO Bill Watson said that the results showed that small funds can deliver better returns and lower fees than larger players – exploding the myth that so-called ‘sub scale’ funds are somehow unsustainable.

“The big funds, some regulators and some media commentators would like Australians to believe that only funds over a certain size can possibly compete in the market.

“These results show that you don’t need to be a member of a large super fund to get great returns on your hard-earned retirement savings; small funds can compete on returns and fees.”

Mr Watson also addressed other criticisms circulating about smaller industry funds.

“In superannuation it is important to not be distracted by spurious ‘one size fits all’ type arguments. We saw this with the faux debate on independent directors, and we also see it with the concerted push for fund consolidation,” he added.

“First Super’s value proposition is that it is close to its members as a small industry fund designed for workers in a particular sector and a top performer in the marketplace.”

* Disclaimer: Based on the 2017/18 financial year crediting rates, which is the return minus investment costs and taxes. Past investment returns are not a reliable indication of future returns.

– Ends –

Media contact:
Phil Davey – Mountain Media
0414 867188 / phil@mountainmedia.com.au

Notes to editors:

1. First Super is the industry super fund for more than 64,000 workers in the timber, pulp and paper, furniture and joinery industries, with over $3 billion under management. Industry super funds have lower than average fees, no commissions, and are run only to benefit members.
2. Details of First Super’s crediting rates are available here.
3. To celebrate its 2017/18 crediting rates, First Super has produced a video featuring members.