Industry superannuation fund originally established to provide for the retirement of workers from a specific industry, but no longer industry-specific. They are not for profit, mutual funds which are membership-based and do not have shareholders.
This type of superannuation fund has in many cases seen the greatest development and improvement over recent years. They were originally like the Asian imported cars. Most of their technology was borrowed from other manufacturers and, although they got you from A to B, there were very few options and in some cases were not that reliable or pleasant to drive.
Industry funds were very similar, though very cheap from an administration point of view their levels of service and options for members were limited.
Just as the Asian car manufacturers have worked on improving their vehicles through innovation and improving overall build quality, many industry funds have improved their levels of service and now offer a wide choice of options while still maintaining low administration costs.
One area where they have not yet improved their performance is when members go into retirement and require a pension. In this situation the administration costs increase greatly compared to when a member was in accumulation stage and there aren’t as many investment options. Another problem can be income generated from the investments is reinvested in each investment class rather than the cash income being deposited in the cash account to fund the pension.