APRA has released new data on the default superannuation sector that ranks the 116 registered MySuper products by their fees and net returns.
All default employer contributions were required to be paid into an authorised MySuper product since 1 January 2014.
The prudential regulator yesterday issued its Quarterly Superannuation Performance and MySuper Statistics for the three months to 31 December 2014, painting a picture of the nascent MySuper sector.
APRA found the industry-wide rate of return for superannuation funds with at least four members (ie. the non-SMSF or 'APRA-regulated' sector) was 3.7 per cent.
The MySuper fund with the best net investment return for the December 2014 quarter was the relatively small Emplus MySuper product, with an impressive return of 5.25 per cent.
UniSuper Balanced was the best performing major player, with a net investment return of 4.56 per cent. Goldman Sachs & JBWere Superannuation (4.27 per cent) and Tasplan MySuper (4.13 per cent) also impressed.
Some of the worst performing funds over the December 2014 quarter were Macquarie Group MySuper (1.7 per cent), Perpetual MySuper (2.19 per cent) and Club Plus Mysuper (2.58 per cent).
On the fees front, the cheapest MySuper product (calculated by adding the indirect cost ratio, the investment fee and the administration fee) was Bendigo MySuper at 20 basis points (bps).
ANZ Smart Choice Super remains one of the cheapest products on the market at 60 bps, along with First State Super MySuper Lifecycle (67 bps) and QSuper Lifetime (68 bps).
The most expensive MySuper product is the Smartsave MySuper Balanced fund (239 basis points), followed by NGS Super's Diversified MySuper product (209 basis points), Australian Ethical balanced fund (198 basis points) and the BT Business MySuper product (180 basis points).
The largest player in the MySuper market is AustralianSuper at $55.9 billion in assets under management, followed by the First State Super MySuper Lifecycle product ($38.4 billion) and REST Super ($31.4 billion).
Looking at the entire superannuation industry, total assets are now sitting at $1.93 trillion, of which $1.18 trillion is APRA-regulated (the remainder is predominantly self-managed).
Within the APRA-regulated sector, there is $395.7 billion invested in MySuper products.
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