A net investment return is what is left in your pocket after the super fund takes out fees. Roll-it Super has standardised the net returns for all investment options to provide a simple comparison rate.
You might think finding a net return is a simple thing doesn't it? Quick google search should get a result? Unfortunately it isn't that easy to find a standard comparison rate.
Different investment reporting
Super funds all report investment performance differently.
Some report investment returns before tax. Some deduct the tax and investment fees, but not the ongoing percentage-based fees. Some deduct all taxes and all the percentage-based fees, but don't disclose earnings diverted to ‘reserve accounts’ used to smooth investment returns.
Almost none deduct the dollar-based flat fees when declaring their investment performance (even though, for people who only have a small amount of superannuation savings, this fee is their biggest headache).
This makes it almost impossible to make direct comparisons between super funds.
Earnings and Crediting rates
To add to the complexity of the problem, super funds all have a ‘earnings’ rate and ‘crediting’ rate.
The earnings rate is the investment performance earned by the super fund after paying the investment managers their fees, but before paying investment taxes and other ongoing fees.
The crediting rate is the investment return after all taxes and all percentage-based management fees have been deducted. These management fees include ongoing administration and investment fees.
Taking the headache out of superannuation comparisons
After an enormous amount of number crunching, we have taken the hard work out of comparing super fund performance.
In partnership with Rainmaker Information, no matter which superannuation company you look at on the Roll-it Super platform, the comparison rate you see will be the net compounding investment return (net return). That way you are always comparing apples to apples.
Want to know more?
- How to I see funds' net returns in Roll-it Super?
- Where do Roll-it Super source their net return data from?
- How do I compare funds?
General advice disclaimer
This is general information only and does not take into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for you having regard to your objectives, financial situation and needs and consider obtaining independent professional advice before making an investment decision. If information relates to a specific financial product you should obtain a copy of the product disclosure statement for that product and consider that statement before make a decision whether to acquire the product.