Heatmaps latest – one-in-five choice products underperform
One in five Choice investment options with an eight-year history has significantly underperformed the heatmap benchmarks, according to the latest Choice super products heatmaps released by the Australian Prudential Regulation Authority.
The regulator said it would be intensifying monitoring of poorly performing products.
The regulator said that of the 407 investment options with an eight-year history, 182 underperformed the benchmarks.
It said this included 80 options that underperformed the benchmarks by more than 0.5%. By comparison, in the 2021 Choice Heatmap, one in four Choice investment options significantly underperformed the benchmarks.
The heatmap also showed that Choice products closed to new members are more likely to underperform and have higher fees that those that are open:
Two-thirds of Choice investment options that are closed to new members had poor or significantly poor performance relative to the heatmap benchmarks. The heatmap showed 22 investment options (28 per cent) underperformed the benchmarks by up to 0.5 per cent, while a further 31 (39 per cent) significantly underperformed by 0.5 per cent or more.
Average fees are higher in Choice products that are closed to new members. The average annual administration fee for members with an account balance of $50,000 in closed Choice products was $225, compared with $149 for open Choice products and $137 for MySuper products.
Garbage in garbage out. Let’s keep going on about ‘performance’ while allowing numbers to be manipulated by vested interests. Choice would have us believe that some super fund trustees are just smarter fund managers than others. Vanguard shows us that this is just a myth. It’s how hard you work your unlisted assets to boost returns but let’s keep up the charade. When will the truth ever get a look in again.
When the quassi Ponzi scheme running similar over inflated asset values such as happened with SVB and their bond prices are sold and the ‘tide-goes-out’. Then we will see who was really swimming Naked (Buffett).