APRA combines performance test and heatmaps
The Australian Prudential Regulation Authority (APRA) has consolidated the superannuation performance test with its heatmaps to create what it is calling a Comprehensive Product Performance Package (CPPP).
The regulator said the CPPP covers 876 MySuper and choice products which, collectively, represent most types of investment offerings for superannuation fund members in the accumulation phase.
It said that when looking at investment performance more broadly to factor in asset class selection and performance relative to peers, the CPPP identifies additional products that have underperformed.
Commenting on the development, APRA deputy chair, Margaret Cole pointed to the identification of further underperforming products.
“Product performance is a key element that trustees must consider when managing the retirement savings of their members. While performance of products across the entire superannuation industry has improved following the introduction of the performance test and APRA’s heatmaps, there are still underperforming products that need improvement particularly among choice product offerings.
“APRA has no tolerance for members to remain in poorly performing products without credible and timely rectification by a trustee.
“The superannuation industry plays a vital role in protecting Australian’s retirement savings, and it is increasingly integral to the strength of our economy. Therefore, it is essential to drive better practices to improve the outcomes for members,” Cole said.
Is the future Fund covered in this analysis ? It underperformed significantly 2024, lets see why and what are the consequences ?
Are Industry Super Assets correctly classified.
Industry Super manage to have Commercial property that is either a Defensive Asset or a Growth Asset with zero information how such are classified differently.
Industry super have Unlisted so called Defensive Assets that can totally blow up, like AustralianSupers $1.1 Bill loss on Pluralsight. that was listed a a defensive Credit asset and actually wasn’t.
Industry Super classify CFD’s as Defensive Assets. You know those wonders that helped cause the GFC. Yep Defensive Assets for Industry super yet they are so badly regarded globally they are illegal in many main stream markets.
So what really are these statistics telling us ARPA?
CPPP CCCP are quite similar acronyms.
Isn’t the method used to calculate performance based on a balance of $50,000?
Is it fair to say that this is deeply flawed?
Has any investigation been undertaken to understand the potential ‘herding’ effect when it comes to investment allocation, or is just based on performance and fees, with no consideration to anything else?