One-in-five superannuation funds are significantly underperforming

One-in-five superannuation funds are significantly underperforming

Australians have billions of dollars invested in poor-performing superannuation funds, according to a new analysis of superannuation funds by the Australian Prudential Regulation Authority (APRA).

APRA has released its latest heat map, covering 163 superannuation “Choice” products that hold $292 billion worth of member funds.

One-in-five of the products featured has “significantly under-performed” benchmarks, the regulator said.

“While the data shows some improvement in the performance of Choice accumulation products, the fact remains that there are still far too many products delivering sub-standard investment returns to fund members,” APRA deputy chair Margaret Cole said in a statement.

“As a result, APRA’s supervision of poorly performing Choice products will intensify, and trustees can expect even greater scrutiny of their product offering.

Some of the products blasted for under-performance have been closed to new members, meaning no one can join. However, that has not helped those still stuck in them.

APRA’s Ms Cole said some members might choose to stay because of other things, such as insurance or financial advice, but urged anyone with a superannuation account to look around for a better deal.

list of funds were specifically noted for “significantly poor investment returns”. However, this doesn’t mean every single product they offer falls into that category. They include:

  • AUSCOAL Superannuation
  • BT Funds Management
  • Energy Industries Superannuation
  • Equity Trustees Superannuation (30 products)
  • MLC Super Fund
  • OnePath Custodians (33 products)
  • Perpetual Superannuation