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In 2021 the Australian Government introduced measures to improve and encourage transparency, boost performance, and ensure trustees are accountable for their actions.
The APRA Performance Test evaluates super funds based on their annual performance. When the test results are made public, the media often highlights underperforming funds, leading some members to worry about their own fund's performance.
It's essential to recognize that if your superfund provider is named in the test, it doesn't automatically mean your fund is an underperformer. Superfund providers typically offer various products with multiple investment options. While one investment option may underperform, your overall fund's performance might still be acceptable.
If you are concerned that your superfund has been named in the APRA Performance Test, there are steps you can take to address your worries. First, verify the exact name of the fund mentioned in the test to ensure it matches your fund accurately. Sometimes, similar-sounding names or multiple products offered by the same provider can cause confusion.
If you find that you have an underperforming super fund, focusing on fees can be a crucial step towards improving your financial situation. High fees can eat into your returns and hinder your fund's performance. To address this, consider choosing low-cost investments that align with your risk tolerance.
Seeking advice from a financial professional can also guide you in making sound investment decisions tailored to your unique financial goals.
By staying informed, carefully evaluating your investment options, and seeking professional advice when needed, you can navigate the complexities of the superannuation landscape and work towards securing a stronger financial future. Remember that prudent financial management and a proactive approach can make a significant difference in achieving your long-term financial objectives.
This blog contains general and factual information and does not take into account anyone's individual objectives, financial situation, needs or tax circumstances. We strongly recommend you contact one of our Advisers if you would like personal advice.
Redpoint Investment Holdings Pty Ltd (trading as CY Financial Advice), is a corporate authorised representative (No. 378099) of CY Financial Services (AFSL No. 509648)