Westpac is expecting to sign a heads of agreement for its underperforming BT Super MySuper product by the end of the financial year.
In an announcement to the Australian Securities Exchange (ASX) of its interim financial results, parent company Westpac said the firm was assessing the options for two products.
These were the AESA MySuper and BT Super MySuper products which both failed the inaugural Your Future, Your Super performance test last year.
In late 2021, members of AESA MySuper were transferred to BT Super MySuper but Westpac said it was now exploring options should the BT Super fund fail the performance test for a second time.
“Consistent with its obligations and APRA’s expectations, the BT trustee is assessing the potential implications of these circumstances and exploring options to ensure the financial interests of members continue to be promoted.
“This includes investigating whether a potential transfer of MySuper and personal super members (non-platform) and their assets to an external superannuation fund, as permitted by the superannuation legislation, is in members’ best financial interests.
“This is well advanced and through a competitive process the BT trustee is expected to reach a decision on a preferred receiving fund and sign a heads of agreement by the end of the financial year.
“If the process does not result in a transfer to another fund, APRA could further review the performance test outcome of the BT Super MySuper product.”