The regulator’s inaugural performance test promises to weed out the not so “super” funds from the rest of the sector.
The Australian Prudential Regulation Authority (APRA) has released the results of its latest assessment of Australia’s superannuation sector, revealing the funds that performed the best.
When it came to default super options, APRA identified UniSuper as a clear frontrunner.
Australian Ethical followed in second place. However, this was the only retail fund to make the shortlist.
Aside from QSuper and Aware Super, APRA’s assessment of default funds was dominated by industry funds – including AustralianSuper, Cbus, Hostplus, Statewide, First Super, and Care Super.
APRA’s full list of top performing default super options is as follows:
Unisuper - Balanced
Australian Ethical Retail Superannuation Fund - Balanced
AustralianSuper - MySuper
QSuper - Lifetime
Cbus - MySuper
Hostplus - Balanced
Statewide - MySuper
First Super - MySuper
Care Super - CareSuper
Aware Super - MySuper Lifecycle
When it came to more bespoke super products, APRA found that HESTA’s sustainable growth option outperformed the benchmark by the highest amount. Unisuper sustainable high growth and high growth offerings followed in second and third place, respectively.
The regulator’s shortlist of high-performing choice fund options is as follows:
HESTA - Sustainable Growth
Unisuper - Sustainable High Growth
Unisuper - High Growth
Prime Super - Alternatives
Unisuper - Sustainable Balanced
Unisuper - Growth
Australian Ethical Retail Superannuation Fund - Advocacy
Public Sector Superannuation Accumulation Plan - Aggressive
Asgard - SMA High Growth
Local Authorities Superannuation Fund - Vision Personal. Just Shares
Speaking at an Association of Superannuation Funds of Australia webinar earlier this week, APRA executive board member Margaret Cole expressed concern over the small number of trustees who scored poorly across their entire range of investment options.
“This is clearly unacceptable for members in those products and raises an equally red flag for APRA about the capability of these trustees to meet their legal duty to safeguard members’ best financial interests,” she said.
Ms Cole called on trustees to improve their governance processes and weed out underperforming offerings, or risk being held to account by future assessments of the sector.
“Our active supervision of underperforming MySuper products over the past two years has driven substantial benefits to members in the shape of reduced fees and members moving or being moved into better performing funds,” she said.
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