The introduction of APRA heatmaps for basic default MySuper products is another welcome step towards removing serial underperforming superannuation funds from the retirement income system.
While APRA has been publishing much of this data since the introduction of MySuper products in 2014, the crucial addition of investment performance benchmark data will help more people recognise the signs of underperformance.
“We welcome APRA’s efforts to clearly show which funds have proven themselves unable to deliver a healthy default MySuper product,” says Xavier O’Halloran, Director of Super Consumers Australia.
Super Consumers Australia says today’s announcement must be taken seriously by the trustees of underperforming funds.
“Trustees must answer why they should continue to exist, as those in the heatmap red zone have been serving up chronic underperformance for long enough.”
“The only difference here is that we now have some transparency over who has consistently been at the bottom of the barrel for the last five years.”
“It’s time for poor performing funds to look for mergers and stop inflicting any further harm on the retirement savings of Australians,” says Mr. O’Halloran.