HUNDREDS of thousands of superannuation investors would have been better off forgoing the government’s tax breaks on contributions and putting their money in the bank, confidential industry figures reveal.
BT, the investment arm of Westpac, manages the bottom-ranked fund, at 43rd, over the past seven years in the key ”balanced fund” sector, which accounts for about 80 per cent of the country’s $1.3 trillion super savings.
The BT Lifetime Super (Employer Plan) has made just 1.5 per cent a year – around half the annual rate of inflation of 2.93 per cent a year over the same period, and equates to compounded losses of 9.6 per cent after inflation is factored in.
Over five years it was even worse, losing 2.43 per cent a year, or 5.36 per cent a year once inflation is taken into account.
Also at the bottom of the rankings is AXA, one of Australia’s largest life insurance companies. Its SD Business superannuation fund has returned just 2.13 per cent a year over seven years. Another BT/Westpac fund, the BT Bus Super – described by the company as a ”deluxe fund” for super savers – is 40th out of the 43 funds in the sector over seven years.
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