Annual Performance Assessment Result for MySuper Product



The Australian Prudential Regulation Authority (APRA) has released the results for the first Your Future, Your Super (YFYS) annual performance test and our MySuper Balanced option has failed the test for the 2020-2021 financial year.

How does the test work?

The performance test assesses our Balanced option and other MySuper products against a new government benchmark over the past seven years to 30 June 2021, and administration fees over the 12 months to 30 June 2021.

The new benchmark blends data from a number of sources and includes returns, asset allocation, investments as well as indirect costs, administration and advice fees. This means the return you receive could be different to the one used in the performance test.

It is our understanding this test ranks products on only one measure, when there are other important factors to consider. For example, appropriate levels of risk for different age groups, insurance coverage implications and whether you align with a fund’s investment ethos on issues such as climate change.

In our communications, we regularly say that past performance is no guarantee of future performance, which is also important to consider given this test only applies to performance over a specific 7-year period.

However, VISSF has consistently delivered returns in excess of its investment objectives across multiple time periods, aiming for between 1.5% and 3.5% above inflation depending on your chosen investment option.

See objectives

This performance test did not apply to the All Growth, Conservative or Cash options

What is VISSF doing?

The recently introduced Your Future Your Super government reforms and new benchmark were always going to make it increasingly difficult for us to meet APRA’s annual performance requirements for the 7-year period ending 30 June 2021.

In this environment, size and scale make a difference – which is one of the reasons why we decided to proactively identify a merger partner that could offer our members the benefits of scale, while preserving a similar cultural emphasis. Our due diligence investigations confirmed Aware Super met our criteria.

The challenges that come with navigating persistent regulatory pressure and increasing legislative reform, reinforce why VISSF and Aware Super have agreed to merge, with our two funds scheduled to come together by 30 November 2021.

Aware Super manages more than $150 billion for its 1.1 million members and has proven it can deliver strong long term results, with an annual average return of more than 9% over five years and a top 10 performer across 3, 5 and 10 year periods.

Pleasingly, VISSF has also produced positive returns over the past 12 months to 31 January 2021. As was reported by our fund manager Russell Investments at our recent Annual Member Meeting, the Balanced option finished the fund year with a 0.9% return and from 1 February up to 30 June is tracking at 9.8% which is a strong start to the year.

See performance

With the merger only three months away, be assured we will arrange the secure transfer of your savings to Aware Super and know that your super will continue to be managed in safe, reliable hands.

Find & combine

Consolidating your super into one account makes your money work harder because you save on paying multiple sets of fees.

Learn more