The Government’s Your Future, Your Super (YFYS) performance test will not disclose the value of the superannuation fund’s mark and will only indicate a “pass” or “fail”.
The Australian Prudential Regulation Authority (APRA) updated its frequently asked questions on its YFYS performance test and said it would publish the results on its website on 31 August, 2021, after all registrable superannuation entities (RSE) were notified of their result on 30 August, 2021.
“For each MySuper product a “pass” or “fail” result will be published; the value will not be disclosed,” APRA said.
This would mean that funds would also not know how much they failed by.
RSE licensees that failed would need to notify their beneficiaries within 28 days. However, in “exceptional circumstances” such as a merger a consideration might be given to deferring the notice.
“Their request must be sent to both their responsible supervisor at APRA and to the Australian Securities and Investments Commission (ASIC) through the ASIC Regulatory Portal,” it said.
“ASIC will be the lead agency in considering requests and will consult with APRA prior to making a decision.”
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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