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Understanding APRA’s Worst Performing Superannuation Funds List

APRA Superannuation Funds Review

The devil is in the detail when it comes to digesting the results of the Australian Prudential Regulation Authority’s “worst performing” super list.

While anything that gets people more actively involved in understanding and reviewing their superannuation fund is to be commended, but it needs to be understood that the APRA league table was an assessment of the relative performances of MySuper Funds only.

MySuper Funds act as a default account for people who do not choose their own super fund when they start a new job. According to government legislation, MySuper accounts are designed to be:

  • Simple: With a single diversified investment option or a lifecycle option, depending on the fund, with simple plain English explanations of products and features.
  • Low cost: Like a basic home loan, MySuper funds are very “vanilla” in nature, with restrictions on the type of fees that can be charged.
  • Easy to compare: MySuper fund dashboards follow a standard format so they can be easily compared.

 

MySuper Funds that Failed to Meet the Benchmark

Retail, industry, and corporate funds all can offer MySuper options to members in the accumulation (pre-retirement) phase. APRA’s inaugural results assessed 76 MySuper funds, with at least five years of performance history, against an objective benchmark.

A total of 13 products failed to meet this benchmark. Among the 13 funds deemed failures by APRA were:

  • AMG Super – AMG MySuper
  • ASGARD Independence Plan Division Two – ASGARD Employee MySuper
  • Australian Catholic Superannuation and Retirement Fund – LifetimeOne
  • AvSuper Fund – AvSuper Growth (MySuper)
  • BOC Gases Superannuation Fund – BOC MySuper
  • Christian Super – My Ethical Super
  • Colonial First State FirstChoice Superannuation Trust
  • Commonwealth Bank Group Super – Accumulate Plus Balanced
  • Energy Industries Superannuation Scheme Pool A – Balanced (MySuper)
  • Labour Union Co-Operative Retirement Fund – MySuper Balanced
  • Maritime Super – MYSUPER INVESTMENT OPTION
  • Retirement Wrap – BT Super MySuper
  • The Victorian Independent Schools Superannuation Fund – VISSF Balanced Option (MySuper Product)

However, almost all of the super funds highlighted will have other portfolios and other fund options which may be performing well and meeting the needs of members. The important takeout from this is to ensure you understand your super fund – including the costs, the portfolio and whether it suits your overall needs and risk profile.

If you want help getting more actively involved in your super, including reviewing your current superannuation policy, super strategy options and assessing whether you are on track to meet your retirement goals, contact the Affinitas Financial Planning team on 07 3359 5244 or

To read the full APRA Superannuation report, see https://www.apra.gov.au/news-and-publications/apra-releases-inaugural-your-future-your-super-performance-test-results

 

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