its a smelly business. some of these union officials also sit on industry super boards. lets hope there is better control of members funds there??
It's even worse than that. Once upon a time you had to use an employer super fund. You didn't get a choice. Then the changes came about where employees could nominate the fund. At the same time that legislation was being passed, the unions re-negotiated workplace agreements to state that under their agreement, the appropirate fund must be used. So much for choosing who manages your money.
Then there's the real truth about industry funds. Many of them are doing well at the moment, but many of them haven't had to revalue their portfolios for quite some time. Parts of some portfolios haven't accounted for the GFC yet.
A lot of people tell me they've got life insurance through their industry super. The average life insurance policy in these funds is $75k. Your widdow will throw a good wake and take a few months to get over the loss. Then they're in real trouble.
The adds brag that they don't pay financial advisors. Most people do a lot better overall if they do actually get some advice. There's nothing wrong with the fund itself, it's just that people aren't educated to make the right decisions going into a fund.