Earlier this year, the Australian Prudential Regulation Authority (APRA) launched its annual test of superannuation fund performance. 13 funds that hold $56 billion have been put on notice, and members can expect a letter in the mail.

The review is part of the Federal Government’s superannuation legislation reform to protect Australians from underperforming funds and to keep fund providers on their toes. Funds were tested on net investment return, strategic asset allocation, total investments, administration fees and advice fees over the past seven years.

The Australian Securities and Investment Commission (ASIC) has ordered these funds to send a letter to members suggesting the money be moved to a different superannuation product. ASIC will be watching to ensure the language in the letter is not misleading or deceptive.

The 13 funds who did not meet APRA’s performance standard include:

The 13 best performing funds of the same seven year period include:

This information and reporting process is a great outcome for Australians and for the honesty, transparency and integrity of the superannuation industry. The test will be held annually and is a great reminder to all of us to keep an eye on the performance of our hard-earned money and retirement options.

The superannuation funds we manage and advice on for our clients, are based on research from an independent house, for the quality of the investment and the objective and risk preferences of our client. 

We recommend you check the name of your fund and to seek advice before you take action. If you would like to discuss the performance of your superannuation, please contact a member of our Financial Services team at mail@adviceco.com.au

This material contains general information only. It is not intended to provide you with financial product advice and does not take into account your objectives, financial situation or needs. Before making an investment decision you should consider, with a financial adviser, whether this information is appropriate in light of your investment needs, objectives and financial situation. Any opinions expressed in this material are opinions only and are subject to change without notice. Such opinions are not a recommendation to hold, purchase or sell a particular financial product and may not include all of the information needed to make an investment decision in relation to such a financial product. No liability is accepted for any loss or damage as a result of any reliance on this material. This material contains, or is based upon, information that Count believes to be accurate and reliable, however Count offers no warranty that it contains no factual errors.

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