APRA releases performance metrics and insights package to improve transparency in superannuation

The Australian Prudential Regulation Authority (APRA) has released a comprehensive package of product performance metrics and insights to increase transparency and sharpen superannuation trustees’ focus on improving member outcomes. 

APRA’s Comprehensive Product Performance Package, or CPPP, brings together the product performance metrics underpinning the legislated performance test and APRA’s superannuation heatmaps. The CPPP covers 876 MySuper and choice products which, collectively, represent most types of investment offerings for accumulation members. 

There was a significant drop in the number of products that failed the performance test in 2024 (37 down from 97) with 52 products that failed the 2023 test exiting the market. 

When looking at investment performance more broadly to factor in asset class selection and performance relative to peers, the CPPP identifies additional products that have underperformed. 

Deputy Chair Margaret Cole said: “Product performance is a key element that trustees must consider when managing the retirement savings of their members. While performance of products across the entire superannuation industry has improved following the introduction of the performance test and APRA’s heatmaps, there are still underperforming products that need improvement particularly among choice product offerings.

“APRA has no tolerance for members to remain in poorly performing products without credible and timely rectification by a trustee. 

“The superannuation industry plays a vital role in protecting Australian’s retirement savings, and it is increasingly integral to the strength of our economy. Therefore, it is essential to drive better practices to improve the outcomes for members,” Ms Cole said.

The package, including an insights paper, statistical publications and interactive product performance lookup tools, is available on the APRA website at: Superannuation product performance.