Is Your Super Fund On The List of The Best And Worst In Australia?
Added: (Sat Jan 07 2023)
Pressbox (Press Release) -
Hundreds of thousands of Australians have been urged by the government’s highest regulator to review their superannuation funds, as it has revealed which products are not meeting customer expectations.
Data released by the Australian Prudential Regulation Authority on Thursday reveals that a staggering 800,000 Australians are in superannuation funds with substantially subpar investment returns.
In an unfortunate turn of events, the Energy Industries Superannuation Scheme was dubbed the worst-performing fund of 2022. It trailed behind its net return benchmark by 1.49 percentage points.
According to an analysis of funds spanning the previous eight years, Colonial First State’s FirstChoice Employer Super, Retirement Wrap’s BT Super and Westpac Group Plan MySuper products have produced “significantly poor” results. Additionally, Commonwealth Essential Super and AMG MySuper investments struggled during this time.
The EISS product failed the performance test for two years, joined in its failure by Retirement Wrap’s BT Super MySuper service, AMG MySuper and Australian Catholic Superannuation and Retirement Fund LifetimeOne fund.
APRA’s yearly MySuper product performance scoreboard featured the rankings, which evaluated each fund based on investment returns, fees and costs, and its long-term sustainability of member outcomes.
Research this year revealed that 350,000 fewer Australians are in insufficient superannuation funds compared to 2021; however, a shocking 800,000 individuals are still stuck in lacklustre plans and losing out on potential earnings.
Margaret Cole, the Deputy Chair of APRA, pushed funds with lacklustre products to direct their members towards higher-quality alternatives.
“Since the inclusion of MySuper heatmap by APRA, costs incurred by members have been reduced, while underperforming products were shut down, and funds with subpar investment performance now possess a lower membership count,” Cole said.
“Despite this, hundreds of thousands of members remain enrolled in funds with unappealing investment results, and the industry faces significant sustainability concerns that must be addressed.”
Worst performing funds
Energy Industries Superannuation Scheme-Pool A – Balanced (MySuper): -1.49 per cent
Retirement Wrap – BT Super My Super: -1.02 per cent
Australian Catholic Superannuation and Retirement Fund – LifetimeOne: -0.79 per cent
Retirement Wrap – Westpac Group Plan MySuper: -0.73 per cent
AMG Super – AMG MySuper: -0.67 per cent
Top performing funds
Unisuper – Unisuper Balanced: 1.56 per cent
Meat Industry Employees Superannuation Fund – MIESF MySuper: 1.54 per cent
Goldman Sachs & JBWere Superannuation Fund – Goldman Sachs & JBWere Superannuation Fund_MySuper Product: 1.38 per cent
HOSTPLUS Superannuation Fund – Balanced option: 1.32 per cent
AMP Super Fund – Macquarie Group MySuper: 1.22 per cent