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Highlights
- The latest report by financial watchdog APRA revealed that 13 big name funds have failed its performance test.
- Inaugural MySuper Product Performance Test assessed a total of 76 superannuation products.
- Trustees of failed funds would now have to write to members by 27 September 2021, advising them of their Performance Test outcome.
The latest report by financial watchdog, the Australian Prudential Regulation Authority (APRA), revealed that 13 big name funds have failed its performance test, which had assessed nearly 5 years of performance history against the objective benchmark.
Inaugural MySuper Product Performance Test, introduced as part of the Australian Government’s Your Future, Your Super reforms, assessed a total of 76 superannuation products.
“Trustees can urgently make improvements needed to ensure they pass next year’s test,” said APRA Executive Board Member, Margaret Cole. They may start planning to transfer their members to a fund that can deliver better outcomes for them, she added.
Source: © Lesl | Megapixl.com
With 13 big funds failing the tests, the fund members would be concerned about the road ahead. Here we will discuss things you can do if your superannuation funds have failed APRA test.
Wait for letter
According to the latest laws, the funds that have failed the APRA test would now have to send a standardised letter by 27 September to their members explaining the test outcome. As already discussed, the funds are required to pass next year’s test or start planning to transfer their members to a fund with better performance.
Compare returns
The letter will advise members about “well-performing” funds on the government’s YourSuper comparison tool, which ranks their annual performance over seven years and the fees charged. The members can assess the performance and accordingly shift to other funds.
Source: © Cammeraydave | Megapixl.com
How can switching to other funds help?
Funds with better returns can potentially help members to save thousands of dollars more for retirement. For instance, members could be 20% better off at retirement by earning 1% higher net return over a 30‑year period. Investors are always advised to conduct detailed research or consult their financial planner before making a financial decision.
Superannuation funds that failed the APRA’s test
- AMG MySuper
- Commonwealth Bank Group Super
- Energy Industries Superannuation Scheme-Pool
- Colonial First State FirstChoice Superannuation Trust
- Labour Union Co-Operative Retirement Fund
- Maritime Super
- BT Super's Retirement Wrap
- ASGARD Independence Plan Division Two
- Australian Catholic Superannuation and Retirement Fund
- The Victorian Independent Schools Superannuation Fund
- Boc Gases Superannuation Fund
- AvSuper Fund
- Christian Super
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