Catholic Super, and its partner fund Equip, have passed the new Performance Test of the Australian Prudential Regulation Authority (APRA), which benchmarks superannuation funds and publicly names underperformers.
The initiative is part of the Federal Government's Your Future Your Super reforms, and will be carried out every year, assessing MySuper products with at least five years of performance history against the objective benchmark.
Thirteen funds were listed as failing the performance test, attracting some media attention. Several super funds who look after members from Catholic institutions have similar brand names, and one of these funds failed the performance test - this created confusion for some Catholic Super members, employers and media. It is important to note that these funds are competitors of Catholic Super and not connected to it in any way.
The positive Performance Test result continues the good news for Catholic Super members. On 1 July 2021 the joint venture between Catholic Super and Equip was completed, meaning lower investment fees, with fee savings for members of up to 20%.
Lower fees mean more money being contributed towards your super, and your future.
The fee reductions are possible because of the greater scale we've achieved from aligning our investments and joining forces with Equip.
As CEO Scott Cameron noted, the lower fees demonstrate the benefits of the joint venture that the two funds have undertaken. "These changes will have significant and positive implications over the long term for members' retirement savings," he said.
