The prudential regulator has published a data “heatmap” assessing the performance of 410 MySuper products, but its methodology has been criticised by several disparate groups.
The Australian Prudential Regulation Authority says its colour-coded spreadsheet is intended to show which products are underperforming and where they need to approve.
“Australia’s superannuation system delivers sound outcomes for most members, but APRA is determined to weed out the industry’s underperforming tail,” APRA deputy chair Helen Rowell said on Tuesday.
But APRA was instantly criticised for its methodology, including its decision to focus on three- and five-year performance benchmarks.
“Achieving sound investment performance … [is] not measured in terms of years,” Association of Superannuation Funds of Australia chief executive Martin Fahy said.
“It’s measured in terms of decades.”
The Financial Services Council – whose full members include super funds, financial advisers, the big four banks and AMP – urged anyone concerned about their fund to speak to their fund or a financial adviser.
“The heatmap may tell you that other funds have had higher returns over five years, but if you’re close to retirement you might be far more concerned with how your fund is managing the risks of a market downturn to safeguard your retirement savings,” FSC chief executive Sally Loane said.
“The heatmaps don’t reflect that.”
Industry Super Australia said the heatmap used “simplistic and arbitrary metrics”, and failed to give primacy to net returns, after all fees and…