Quote:So you argue that the best performing losers can beat the worst performing winners in this.
No. I am saying that everyone is a loser, because the difference which you think is so significant is less than what most people lose to compliance costs every year. On average, industry superfunds underperform private managed direct investment funds, probably for the same reason behind the 0.6% difference you carry on about.
There are a 100 other ways you could divide the available options up into winners and losers. None of them are rational, because only a moron would seek to invest in either an average industry fund or an average private fund.
But if we must adopt your idiotic dichotomy, it is like this - the best performing private funds outperform every single industry super fund in the market, by a wide margin. The difference in the average is small compared to the range of performance available.
You are focusing on one little detail, while ignoring actual performance. As the saying goes, you are being penny wise, pound foolish.
The difference in average performance is likely largely attributable to the difference in average fees. The same thing goes with private funds. You could divide them up into the group that has, on average, 0.6% less fees than the rest, and you would get the same dichotomy, only this time it would give you an actual insight into what is going on, and the beginnings of a decision on where to actually put your money, seeing as "the average super fund" is not an option.
This is why, despite your ideological drivel, industry super funds underpeform privately managed direct investment funds on average. It is because they are super funds. No amount of cost cutting can make up for the colossal waste inherent in the mandatory superannuation schemes.
You have been deceived by the propaganda from the people who are eating away at your retirement savings every year.
No-one can invest in "the average industry super fund". You have to choose an actual fund, and when you look at the options available, industry super funds are a long way down the list. And when you look at the options that are not available because the government is compelling you to waste your money, you realise you are being ripped off. Basing your decision on the average performance spread over thousands of other funds while ignoring the elephant in the room is just stupid.