Close to a fifth of super products deemed no good: APRA
According to APRA, 13 super funds are failing their members. Which funds didn't pass muster?
KEY POINTS
- 13 products were not up to scratch, failing objective benchmarks
- A handful of super funds struggled to receive a pass mark from APRA
- Rankings were part of APRA’s annual super fund heat map
The Australian Prudential Regulation Authority (APRA) has released a scathing report on the state of Australia’s superannuation funds.
13 (or almost a fifth) of the 76 assessed MySuper products failed to meet APRA’s objective benchmark.
APRA executive board member Margaret Cole was critical of the failed funds.
“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,” says Cole.
The failed funds represent 1m Australians - with total assets of $56bn.
That’s a lot of rotten nest eggs.
The underperforming funds include Christian Super, Commonwealth Bank Group Super, My Ethical Super, and ASGARD Employee MySuper.
“Trustees of the 13 products that failed the test now face an important choice,” says Cole.
“They can urgently make the improvements needed to ensure they pass next year’s test or start planning to transfer their members to a fund that can deliver better outcomes for them.”
According to Chant West, the average ‘High Growth’ super fund returned 6.9% P.A. across the last 15 years to 30th June, 2021, before fees.
The full list of failed products can be found here.
