As part of the Your Future, Your Super reforms, the government has mandated a performance test to ensure members are aware of how their fund measures up on key performance metrics.
APRA’s inaugural results showed 76 MySuper products have been assessed, with at least five years of performance history against the objective benchmark. A total of 13 products failed to meet the objective benchmark.
The 13 funds include AMG Super, ASGARD Independence Plan Division Two, Australian Catholic Superannuation and Retirement Fund, AvSuper, BOC Gases Superannuation Fund, Christian Super, Colonial First State FirstChoice Superannuation Trust, Commonwealth Bank Group Super, Energy Industries Superannuation Scheme-Pool A, Labour Union Co-Operative Retirement Fund, Maritime Super, Retirement Wrap, and The Victorian Independent Schools Superannuation Fund.
These funds will now be required to write to members by 27 September 2021 advising them of their poor performance.
“It is welcome news that more than 84 per cent of products passed the performance test, however APRA remains concerned about those members in products that failed,” APRA executive board member Margaret Cole said.
As well as scrutinising the plans of the 13 funds that failed the test, APRA noted they are engaging with trustees at risk of failing the performance test next year, to ensure they take the steps necessary to improve performance, and to understand their contingency plans.
“APRA has intensified its supervision of trustees with products that failed the test and has requested they provide a report identifying the causes of their underperformance and how they plan to address them,” Ms Cole said.
“Trustees have to monitor their products closely and report important information to APRA – including relating to the movement of members and outflow of funds.”
More to come…
