![]() ![]() Mr O'Halloran says consumers should be sceptical when assessing such claims. It also touted the fund's performance over the last year. When lifecycle products are assessed by APRA, these various investment options are grouped together.Ĭraig's fund complained that this methodology meant that the return on his investment could be different to that used in the performance test. Older members have a higher allocation to bonds and other defensive assets. Younger members in lifecycle funds like Craig have higher allocations to growth assets such as shares and property. His fund claimed the performance had "delivered returns in excess of the investment objectives that were established when the fund was set up".Ĭraig was invested in a lifecycle product, which meant his fund varied the risk of its investments depending on his age. Read more Hold on, my super fund says its performance isn't badĪfter reading the correspondence from his super fund, Craig was confused. These ratings are listed in the government's YourSuper comparison tool, along with each product's performance and annual fees. They use those benchmarks to compare how the fund performed," he says.įunds assessed by APRA are marked as either "performing" or "underperforming". "There are different benchmarks that are used to compare different asset types. ![]() "It's a sign that the fund is not really adding much value to your superannuation savings," says Xavier O'Halloran, director of Super Consumers Australia.ĪPRA compares the performance of your fund to benchmarks based on the fund's assets, Mr O'Halloran explains. Under new rules introduced by the government this year, these funds are required to notify members of their underperformance in writing. Should I be worried?Īccording to the federal government, there are more than 1 million super accounts held with funds that have failed a performance test by the Australian Prudential Regulation Authority (APRA). "But then you get this letter that says, 'Hey, not only are you paying too much in fees, you're underperforming as well.' When I got it, I was quite surprised." I've got a letter. You see growth, and you assume that's a good thing," he says. "You look at your balance and it's growing from your contributions and the performance. ![]()
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