So, what does profit-to-member really mean?
Here’s where it gets good. Generally, a profit-to-member fund returns profits to members, not shareholders or anyone else. Since these funds were established for members, the members’ needs always come first.
Profit-to-member funds typically charge lower fees than retail funds and these fees are generally designed to cover the costs of running the fund.
Finally, profit-to-member funds have also tended to deliver better returns. Bear in mind, past performance is not an indicator of future performance. This is driven by the style of investments that these super funds adopt. Profit-to-member funds typically invest more in private assets like real estate, land, equipment and natural resources.