This week we've been mentioned in the press in relation to our performance in the APRA Heatmap, as have most funds in the industry.
We would like to assure members that Maritime Super is not under-performing, and neither is the default MySuper option.
This update provides some context around this issue by highlighting a few key points.
1. Most members are invested across our main investment option, Growth and Balanced, and getting good returns
Most members are invested across our other range of options, which are performing well and exceeding their investment objective targets.
On current performance of the fund, the returns for members of Maritime Super remain strong. For the twelve months through to 11 December 2019, the Growth option has seen returns of 16.27%.
We ask you to please check which option you're in before getting caught up in the media hype.
2. The Heatmap only assessed one investment option - the MySuper option
The Heatmap only looked at the default options across super funds - for us that's our MySuper option. Less than 15% of members' assets are invested in this option, being the default. In fact, most members of these members are in there by choice for the MVP feature.
3. The MySuper option has unique risk protection overlay that APRA's methodology can't adequately measure
The methodology used by APRA is not equipped to adequately measure the MVP (our risk protection overlay) that is unique to our investment strategy. As a result, the MySuper option compares unfavourably in the Heatmap when markets have been strong, and the protection has not been triggered. The MVP is like having insurance, the payoff comes when markets go south.
4. Industry experts have come out criticising the APRA process and methodology
A number of industry experts and bodies have strongly critiqued the Heatmap process and methodology, noting it's not a productive outcome for the industry and members should not rely on it.
- AFR - Why APRA's heat map isn't good enough - Dec 11.
- Investor Daily - APRA's MySuper heat map is a nightmare - Dec 10.
- Lonsec - APRA heat maps should be put on ice - Dec 11.
- Alex Dunnin (Rainmaker) - 'as useful as an ashtray on a motorbike' Dec 10.
Because we're one of Australia's longest running super funds, we're different and our membership profile differs from other super funds, so we make investment decisions accordingly to suit our members and protect their super balances.
Maritime Super has successfully managed the retirement savings of generations of members - today our members retire with at least double the industry average.
We're here to help
If you're uneasy about the news or would like to discuss your investment strategy, please call Member Services on 1800 757 607. You can also be put in touch with a financial planner to get free advice over the phone or to make an appointment for more detailed advice.
