The financial watchdog handed down its annual report card, revealing one MySuper product and 96 trustee-directed products failed to pass its test.
The financial watchdog has handed down its annual report card for superannuation products, revealing some 64,000 accounts with almost $4.2 billion in assets are held in funds that underperformed.
The test showed that one MySuper fund and 96 trustee-directed products, mostly owned by AMP and Insignia, failed to meet the benchmarks. MySuper is a default account for people who don’t choose their own super fund, while trustee-directed products are “choice” products where a trustee has control over the design of the investment strategy.
Platform trustee-directed products are those offered through software allowing customers to choose from a variety of different investment options, known as platforms. This group of products charged the highest median administration fees and costs at 0.54 per cent of assets compared to 0.27 per cent for non-platform trustee-directed products and 0.26 per cent for the default MySuper products.
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