The five worst-performing super funds in Australia


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Five MySuper products have failed the second annual MySuper performance test, with four of them failing for a second time.

The product that failed this year's performance test for the first time is Westpac Group Plan MySuper.

Westpac must now identify the causes of underperformance and set about working to correct it. It must also assess the potential implications of the failure on the fund and its sustainability, developing a plan to close the product and move members to another, if it becomes necessary.

four mysuper products fail performance tests for second time apra

In a notice to members already available online, Westpac said: "For Lifestage products like those offered by BT as a part of the Westpac Group Plan, the annual performance assessment takes into account the asset-weighted performance of all Lifestage investment options collectively to calculate a single performance return. The combined eight-year performance of our Westpac Group Plan MySuper product failed the annual performance assessment."

The four options that failed the test for a second time are Australian Catholic Superannuation and Retirement Fund's LifetimeOne, EISS Super's MySuper - Balanced, BT Super's MySuper and AMG Super.

All but AMG Super have already made moves to merge with other funds. ACSRF is currently undertaking a merger with UniSuper, EISS Super is merging with Cbus and BT's superannuation products will soon move to Mercer.

Combined, the failed products are home to about 600,000 members and close to $28 billion in retirement savings.

Those that failed for a second time have until September 28 to notify their members. They can now not take on any new members and cannot be offered as a default fund for any employers. They must also return any contributions made by new members after today.

APRA said it will be engaging with the four trustees to ensure members achieve better outcomes as quickly and safely as possible.

In total, APRA assessed 69 MySuper products with 93% passing. Further, five of the products that failed last year's test passed this year.

"Pleasingly, almost 96% of MySuper superannuation members are now in a performing MySuper product, equating to 13.1 million member accounts," says APRA member Margaret Cole.

"Equally positive is that the performance test has contributed to over 5.1 million MySuper members (just over 38%) now paying lower fees than they were last year.

"This is the culmination of APRA's intensified supervisory approach, driving trustees to take meaningful action to improve member outcomes. APRA encourages superannuation trustees to continue to explore ways to improve the efficiency of their MySuper products."

This article first appeared on Financial Standard

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Jamie Williamson is editor of Financial Standard. Prior to this she was a senior journalist, covering wealth management including financial advice, superannuation and life insurance. Before turning to journalism, she worked in public relations, specialising in financial services. She has a Bachelor's degree in communications from the University of Newcastle.
John Wimbus
October 19, 2022 8.30pm

Good Evening Jamie, sorry to bother you, my names John, l am currently with AMP Super, and l just saw your article - AMP cops $14.5m penalty over fees for no service. Can l ask for your advice please, this has happened to me as of May this year, l just found out through my employer that they have been receiving my super contributions back to them. It appears that l haven't received any super into my profile, and l have still been continually charged fees. Do you have any suggestions on what to do?

Jamie Williamson
October 20, 2022 10.56am

Hi John,

Not a bother at all - thank you for getting in touch.

I can't provide you with any financial advice, but I can suggest that you get in touch with AMP directly to find out if there has been an issue. Earlier this year AMP made the decision to consolidate several of its superannuation products, so it might be worth finding out if the product you're invested in was one of them and whether this is a factor. If it was, you should have received communication from AMP, likely by email, that this was going to occur. It's disappointing that your employer didn't notify you of this until recently, but I would also suggest speaking with them again to see if they can provide any further information as to why the superannuation contributions have been rejected.

One thing that may ease your frustration is knowing that, in relation to the article you've seen, 'fees for no service' is referring to those charged for services offered solely to employees of a particular company that had an agreement with AMP even after they'd changed employers, not to fees being charged on accounts that don't receive contributions. While it may not seem fair, super funds are still able to charge fees on your account despite no contributions coming in as they are still investing on your behalf and, if you have it, keeping your life insurance cover in place.

Remember, you can always send a question to Paul Clitheroe as well - he might be able to help you understand your options a little better.

Good luck!

Jamie Williamson


Financial Standard