As a result of the recommendations by the Productivity Commissioner, the Federal Government has ensured members’ retirement savings are protected from underperforming funds by subjecting superannuation funds to an annual objective performance test based on their net investment returns.
The first annual performance review has been concluded and 13 funds have FAILED the test.
Please note, that we are pleased to advise that no client of Quinn Financial Planning has an investment in any of the 13 underperforming funds listed below.
- AMG Super – AMG MySuper
- ASGARD Independence Plan Division Two – ASGARD Employee MySuper
- Australian Catholic Superannuation and Retirement Fund – LifetimeOne
- AvSuper Fund – AvSuper Growth (MySuper)
- BOC Gases Superannuation Fund – BOC MySuper
- Christian Super – My Ethical Super
- Colonial First State FirstChoice Superannuation Trust – FirstChoice Employer Super Fund
- Commonwealth Bank Group Super – Accumulate Plus Balanced
- Energy Industries Superannuation Scheme-Pool A – Balanced (MySuper)
- Labour Union Co-Operative Retirement Fund – MySuper Balanced
- Maritime Super – MySuper Investment Option
- Retirement Wrap – BT Super MySuper
- The Victorian Independent Schools Superannuation Fund – VISSF Balanced Option (MySuper Product)
If you have invested in any of the above funds it would be advisable to;
- Seek advice from a financial adviser that is not directly connected or affiliated with the fund so that you can get impartial advice.
- Turn this problem into an opportunity. Review your superannuation, investment goals and objectives to consider whether your investments are appropriate for your future needs and requirements.
- Consider rolling out of your superannuation fund into a better performing or more highly regarded fund.
- If you decide to transfer out of any of these funds you should consider whether they include any non-investment performance assets such as life insurance, income continuance or TPD insurance. Importantly, if you roll out of a fund that provides these benefits, then these benefits may not be offered in your new fund, or the premiums may be significantly higher, or you may not be able to obtain the same level of insurance or cover.
If you have invested in any of the above-shamed funds, you should receive a letter from the fund notifying you of the test result. It is important to note that if the fund fails two consecutive years, it will be closed to new members.
Should you require further information in relation to your Superannuation please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.