The Your Future Your Super legislation was passed on 27 June 2021. The legislation includes a performance test for all MySuper products, the results of which were announced on 30 August 2021. APRA determined that our Growth (MySuper) option (and only this option) marginally underperformed against the test for the period covering the last seven years.
We understand that this may concern members and that this test is complex so we provide the following information to help you. Please contact us directly if you have further questions.
Here is the email we sent to all members on Friday 27 August 2021:
As I mentioned in my email last week, there is a new annual performance test for MySuper products.
What is the test?
The test looks at the returns for MySuper products for the 7 years to 30 June 2021, and compares those returns to a new benchmark set out in the legislation. At this stage, we understand AvSuper’s Growth (MySuper) option will not pass the test. APRA will notify us of the result in the coming days.
If you are not invested in the Growth (MySuper) option, such as if you have an Income Stream, a Defined Benefit or made an investment choice, this test does not directly affect you.
Our chair, Ben Firkins, has recorded a short video explaining the basics of the test.
What happens next?
We expect APRA to publish the list of funds that haven’t passed the test, probably next week. As a result, there will likely be media coverage.
If we are notified that we have not passed the test, we will be required to write to MySuper members, advising that our MySuper product ‘has performed poorly’. The exact text is set out in the legislation.
Where can I learn more?
Following our initial webinar regarding AvSuper’s response to the Your Future Your Super Performance Test, we have been asked by members to run further sessions outside of normal business hours to enable them to attend.
The remaining webinar will beat 3.30pm on Thursday 30 Sept – you can register now.
The upcoming webinar will provide further information regarding Your Future Your Super and answer your questions about the performance test.
The purpose of the webinars is to provide general information only. If you would like personal advice that takes into account your individual circumstances, consider obtaining financial advice from a qualified financial adviser. You can access personalised financial advice by calling us on 1300 128 751 (local call), using AvChat or emailing firstname.lastname@example.org.
Lastly, I understand this may sound concerning. Please be assured, we are carefully working through what this means for the fund and its members, and we will make the adjustments necessary so we can continue our focus on delivering a quality fund and great service to you, our members.
We look forward to continuing to be of service.