Half trustee-directed super products fail performance benchmarks
More than half of all platform trustee directed superannuation products are failing to reach their performance benchmark, according to the Australian Prudential Regulation Authority (APRA).
Releasing new insights into superannuation performance drawn from this year’s Your Future, Your Super performance test, APRA said the findings showed.
- there is significant variance in the administration fees paid by fund members within each of the product segments. This indicates considerable scope for fee reductions across the industry, particularly for trustee directed products;
- trustee directed products offered through platforms generally have the highest fees. Trustees should review whether the additional services provided to justify the higher fees are delivering value for money to members;
- larger funds tend to charge lower administration fees, which reinforces the efficiency and cost-savings benefits of scale that exist in superannuation; and
- while most MySuper products and non-platform trustee directed products are outperforming the investment component of the performance test, more than half of all platform trustee directed products are failing to meet the benchmark.
APRA has published each superannuation product’s numerical results revealing how they performed relative to the tailored benchmarks beyond “pass’ and “fail’ on the performance test.
APRA is transitioning to a new approach around the performance test. From next year, a comprehensive transparency package covering investment returns, fees and performance test metrics will be published soon after the annual performance test.
Dah, of course loads of Investments that are Listed and show real values will struggle to meet APRAs tests.
Clearly APRA want everyone to join Industry Super, anything else will be eliminated soon enough.
And let’s have ALL Asset Unlisted, then every Industry Super Fund Investment will pass as they just make up the return figure that pleases APRA.
Regulatory Capture Corruption is sooooooooooooooooo out of control from ASIC & APRA to Industry Super.
Not sure what this is about at all. Last APRA Test was 31/8/23. Why is this old headline here?
Industry Super funds that have unlisted investments in sustainable projects, outperform as these assets are valued by an independent board who is usually headed up by the CEO of the industry fund. The industry valuations are a not a true reflection assets held. Who is checking the valuations of these industry funds.
The fee test pass or fail was based around an assumed balance of $50,000?
What retiree has $50,000…. and of course there was no consideration to larger balances attracting lower fees as per the bulk of platforms out there that reduce their fees at various points.
Another case of politicians looking like theyre achieving something I guess.