POWERED BY MOMENTUM MEDIA
‘Stay the course on performance tests’: AIST
The Australian Institute of Superannuation Trustees (AIST) has urged the Government to extend the Your Future Your Super (YFYS) performance test to all Choice accumulation super products.
Mel Birks, AIST deputy chief executive and general manager, stated it was important to test all Australian Prudential Regulation Authority (APRA) regulated accumulation products, not just MySuper ones.
This followed findings of the recent APRA Choice heatmap which found such products were higher cost and had a greater variance in performance than MySuper products on average.
Minister for financial services, Stephen Jones, announced last July that YFYS tests would not be extended for 12 months while the test underwent a review.
Birks said: “The Productivity Commission (PC) has also found that Choice products underperformed MySuper products on average and had a relatively long ‘tail’ of underperformance, which is significant given they account for $1 in every $3 in in APRA-regulated funds.
“It is important that the worst areas of underperformance in the super system are addressed by including all products in a performance assessment.
“This is also consistent with the PC’s view that all products should have simple and comparable dashboards and performance requirements.”
She argued in favour of a consistent, accessible, comprehensive and simple performance test to enable members of Choice products to properly assess their performance.
In late 2022, APRA chair Margaret Cole noted the Government had begun a review of YFYS laws and warned the spotlight on performance tests would “only get more intense.”
The test remained under review by the Treasury alongside advisers, economists, academics, and not-for-profit super funds as part of a broader review of YFYS measures.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist at Money Management and Super Review, with a focus on financial advice, investments, funds management, and superannuation. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Australia’s second largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
62.62 3 y p.a(%)
3
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.95 3 y p.a(%)
4
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
5
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
Add new comment