APRA releases 2024 superannuation performance test results

The Australian Prudential Regulation Authority (APRA) has released the results of the 2024 superannuation performance test.  

The annual performance test is designed to increase industry transparency and improve member outcomes by assessing the long-term performance of superannuation products against tailored benchmarks, with consequences for those that fail.  

This year’s test evaluated the performance of 57 MySuper products and 590 trustee directed products¹, a subset of the choice segment. 

For the first time, all MySuper products passed the test. This compares with one fail in 2023, five fails in 2022 and 13 fails in the inaugural test in 2021.  

Of the trustee directed products, 37 out of 192 platform² products failed to meet the test benchmarks. This includes 27 products which have failed for a second time and will now be closed to new members. None of the 398 non-platform products assessed failed to meet the benchmarks. In 2023, the first year that choice products were included in the test, 76 platform and 20 non-platform trustee directed products failed the test. 

The 37 failed trustee directed products were concentrated in products offered by two trustees: 36 from N.M. Superannuation Proprietary Limited and one from I.O.O.F. Investment Management Limited. 

Deputy Chair Margaret Cole welcomed the overall test results but noted that APRA’s priority focus on product performance would not diminish. 

“This year’s results demonstrate the progress being made to address underperformance. At the end of June, all 15.7 million MySuper member accounts, with combined assets of nearly $1.1 trillion, were invested in performing products.³ 

“We also note that trustee activity to eliminate underperforming products, through the consolidation, restructuring or withdrawal of investment offerings, has contributed to a sharp decrease in test failures by trustee directed products.  

“These are pleasing results but, as trustees well know, past performance is no guarantee of future success. Even based on existing performance, there is significant scope for improvement across key drivers of performance, including costs and fees, and investment returns.” 

Ms Cole said APRA planned to publish a comprehensive package of superannuation product performance metrics, data and insights in late September, as part of APRA’s ongoing scrutiny of how trustees are meeting their obligation to act in the best financial interests of their members.

Details of the test results are available on APRA’s website at: Annual superannuation performance test.

Footnotes

¹Trustee directed products are multi-asset products where the trustee or connected entity has control over the investment strategy and/or the management of investments. 

²Platform products are products offered by trustees via one or more investment menu platforms.

 ³MySuper member accounts and assets include all accumulation members who access investment options underpinning a MySuper product.