In a recent review undertaken by APRA, it was revealed that many default funds have been found to be underperforming, have made lack lustre returns and charging customers high fees in return.
The regulator has renewed its push to improve the sector by overhauling underperforming funds or eradicating them all together. Much of this focus was borne from the 2018 Financial Services Royal Commission.
It is APRA’s view that since compulsory contributions are held for long periods of time, sometimes decades, underperformance can cost individuals hundreds of thousands of dollars over their working lives.
Default funds such as Maritime Super, First Super, Mine Super, BT, Mercer, NAB and Russell Investments are some of the funds identified by APRA in this review.
It is APRA’s view that if a fund is doing poorly and charging you fees several times higher than its competitors; Australians should know and more importantly be ready to switch.
If you are unhappy with your super fund’s performance, please contact us for an obligation free review.