In this guide
Results for APRA’s annual superannuation fund performance test were released at the end of August, and the verdict was mixed.
For the first time, all MySuper options and non-platform choice products passed the test; for choice options offered via platform services, the result was grimmer.
Choice options need to be actively selected, while MySuper is the default option you will be placed in if you don’t choose an alternative.
Platform services provide access to a wide range of investment options but are known for being expensive, which can put a drag on returns. Almost 20% of the choice platform products tested in 2024 failed the performance hurdle.
The Australian Prudential Regulation Authority (APRA) says the test is intended to hold super trustees to account for underperformance through greater transparency and increased consequences. So far, all products that have experienced two or more test failures in the past have closed, demonstrating that the strategy appears to be working. Persistently underperforming products are being removed from the market.
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