Hayne gets last laugh as “Your Future Your Super” laws deliver for small punters over big bank pals – Michael West

Super Fund asset performance

Underperforming Funds Named and Shamed A new annual performance test will compare the rolling 8 year net returns of each MySuper product with what it should have attained based on its stated investment strategy. Critically, and for the first time, the benchmark used to calculate net returns is codified in the YFYS regulations, so all funds must adhere to the same calculation methodology. This both eliminates the ability for funds to ‘game the numbers’, and allows for an apples-to-apples comparison across different funds. Funds that underperform their designated benchmark by 0.5% per year or more in two consecutive years will have to inform all members in writing, and will be barred from accepting new members while their performance remains sub-standard. The tests will, in effect, be Key Performance Indicators (KPIs) for super funds. Based on the following chart from the Productivity Commission final report, there will be many APRA-regulated funds that find themselves falling short of the mark.

Source: Hayne gets last laugh as “Your Future Your Super” laws deliver for small punters over big bank pals – Michael West