Instances of underperforming superannuation funds continue to persist as the Australian Prudential Regulation Authority (APRA) has issued formal notices to eight trustees in relation to the underperformance of 10 MySuper products.
Speaking at the Senate Economics Legislation Committee, APRA chair, Wayne Byres, said the authority was finding out what actions the trustees were making to address their underperformance.
Byres also said there was continuing momentum on fund mergers since June last year and six had been completed so far.
“There are now 164 APRA-regulated funds, well down on the 279 funds that existed when the Stronger Super reforms were introduced in 2013,” he said.
“This consolidation has helped drive better governance, stronger performance and lower costs, although we still see plenty of scope for further consolidation and efficiency within the industry.
“There is also still more to do in relation to fund underperformance.”
Byres noted APRA would release new reporting standards for its superannuation heatmaps with more granular information on performance, costs, and expenditure.
The heatmaps would also expand beyond MySuper products during the second half of this year.