POWERED BY MOMENTUM MEDIA
Super performance test delivers ‘pleasing’ results in 2024: APRA
APRA has unveiled the results of its 2024 superannuation performance test, which evaluated 57 MySuper products and 590 trustee directed products, a subset of the Choice segment.
For the first time since the test was first launched, all MySuper products, comprising 15.7 million member accounts and nearly $1.1 trillion in total assets, passed.
In comparison, one product failed in 2023, five failed in 2022, and 13 failed the inaugural test back in 2021.
Looking at trustee directed products, APRA found 37 out of 192 platform products failed to meet the test benchmarks, with 27 of these products failing for a second time. This means they will now be closed to new members.
The 37 failed trustee directed products were concentrated in products offered by two trustees: 36 from N.M. Superannuation Proprietary Limited and one from I.O.O.F. Investment Management Limited.
APRA said that none of the 398 non-platform products assessed failed to meet the benchmarks. Last year, the first year that Choice products were included in the test, 76 platform and 20 non-platform trustee directed products failed the test.
“This year’s results demonstrate the progress being made to address underperformance,” said APRA deputy chair Margaret Cole.
“We also note that trustee activity to eliminate underperforming products, through the consolidation, restructuring or withdrawal of investment offerings, has contributed to a sharp decrease in test failures by trustee directed products.”
She described the results as “pleasing, but said that “past performance is no guarantee of future success”.
“Even based on existing performance, there is significant scope for improvement across key drivers of performance, including costs and fees, and investment returns,” she said.
Cole said that APRA plans to publish a comprehensive package of superannuation product performance metrics, data, and insights in late September, as part of APRA’s ongoing scrutiny of how trustees are meeting their obligation to act in the best financial interests of their members.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
