Margaret Cole

Four superannuation products have now closed to new members as a result of failing the Your Future Your Super performance test for a second time.

However, only five products failed the second iteration of the benchmark test released on Wednesday morning; the inaugural test saw 13 funds fail.

Some 69 MySuper products with at least five years performance history were measured based on investment performance, fees and costs.

The four repeat failed funds are Australian Catholic Superannuation and Retirement Fund’s LifetimeOne, Energy Industries Superannuation Scheme-Pool A Balanced (MySuper), BT Super MySuper and AMG MySuper.

Westpac Group Plan MySuper failed for the first time and will be required to notify members by 28 September 2022.

APRA stated three of the four repeat failures already had plans to exit the industry with 500,000 members expected to transfer before the 2023 performance test.

Transitions

The Westpac and BT products have been transferred to Mercer as part of the acquisition of Westpac’s superannuation business.

A spokesperson for BT tells Professional Planner the fund has worked hard to improve member outcomes including reducing fees.

“We are disappointed with this outcome and have recently announced our intention to merge the BT Personal and Corporate superannuation funds with Mercer Super.”

Mercer Super has passed the performance test both times.

“We continue to work in our members’ best financial interests and by being part of a much larger Mercer fund BT members will have the potential to benefit from stronger performance, lower fees with most members to see a fee reduction of around 25 per cent off standard fees, more investment choice and broader members services,” the BT spokesperson said.

Win for APRA

APRA member Margaret Cole said the overall results highlighted the improved outcomes that have been achieved for superannuation members over the last 12 months.