Australian Retirement Trust has been named among the best performing Balanced super funds for the 2022 financial year by leading research house SuperRatings.
Both Balanced options for our Super Savings and QSuper Accumulation accounts were recognised this year.
In SuperRatings’ public offer category, our Super Savings Balanced option ranked third over 10 years, returning 9% per annum 1, 2. It also ranked fifth over one year to 30 June 2022.
Australian Retirement Trust’s QSuper Balanced option was named the top performing super fund based on risk-adjusted performance over seven years, returning 6.1% per annum.
To learn more, read the SuperRatings announcement.
Australian Retirement Trust’s Investment Capability
Ian Patrick, Australian Retirement Trust’s Chief Investment Officer and Andrew Fisher, Head of Strategy discuss partnering with best of breed investment managers and how the size and scale of Australian Retirement Trust allows us to take advantage of investment opportunities to deliver positive outcomes for our members.
APRA’s MySuper Performance Test
The Government’s Your Future, Your Super reforms (the YFYS reforms) came into effect on 1 July 2021. The YFYS reforms require the superannuation industry to improve its efficiency, transparency and accountability.
Under the YFYS reforms, APRA is required to conduct an annual performance test for MySuper products.
From 1 July 2021, MySuper products are assessed annually by APRA against a net investment performance benchmark:
Failure of the test:
- Requires the failing funds to inform their members, and
- If two consecutive failures occur prohibit these funds from accepting new members (until they pass an annual test)
What has occurred
In August 2021, 80 default (“MySuper”) products were assessed under the new performance test.
- 13 funds, with a combined membership of 1 million accounts and $56 billion in assets, failed the test.
Expectations for failing funds
APRA expects that failing funds will:
- Identify underperformance causes and develop and implement a plan to rectify.
- Assess the potential implications on the fund and the sustainability of operations.
- Develop a contingency plan to close the product, transfer members to another fund/product and/or exit the industry.
See APRA’s Technical paper – MySuper Heatmap [page 5] for more information.
The Australian Retirement Trust report card
The Super Savings options were assessed favourably as at 30 June 20213 (in the August 2021 test).
Our investment process is deliberate in its consideration of all the active risks associated with the performance test.
Implications for you to consider
Where you are using a default fund that fails the performance test, consider:
- Risk of failure – Is your default fund at risk of failure?
- Perception risk – Will employees question your fund choice?
- Administration impact – Do you have an alternative in place?
Supporting you in meeting your obligations
We have a range of resources and support materials available to you, including:
- Support from your Relationship Manager or Specialist.
- Employer briefings and information videos.
- Updates and information on legislative changes to you or your employees.
- Employer Online and Clearing House easy way to pay and manage super payments, securely online.
- Dedicated employer hub on our website.
Australian Retirement Trust wins big at Chant West awards
Following the largest merger in the Australian superannuation industry, Australian Retirement Trust has cemented its position as one of the largest and most highly awarded funds in Australia at the Chant West awards held in May.
Australian Retirement Trust was awarded Corporate Solutions Fund of the Year and Best Fund: Member Services for its Super Savings product (heritage Sunsuper product) and Best Fund: Longevity Product for Australian Retirement Trust’s QSuper Lifetime Pension product.
Annual Statements and Annual Member Meeting
Annual Statements will be issued to members from September 2022. Annual Statements include information about account balances, investment performance, contributions, fees, a retirement projection and more.
Following the delivery of Annual Statements, Australian Retirement Trust will host its first Annual Member Meeting. Featuring a member Q&A session, this is a great opportunity for members to find out more about our performance to date and our plans for the future of the fund. We’ll provide you with more information on the event in our November edition.
1 The Australian Retirement Trust Super Savings Balanced option has adopted the pre-merger investment strategy of the Sunsuper Balanced option. The industry median return for the SR50 Balanced (60-76) Index comprises the 50 largest investment options with a similar asset allocation to growth style assets between 60-76%. Source: SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index, June 2022. The Super Savings Balanced option has identical investments to the Balanced Pool in the Lifecycle Investment Strategy. Members invested in the Lifecycle Investment Strategy are invested 100% in the Balanced Pool until age 55. Past performance is not a reliable indicator of future performance. Investment returns are net of investment fees and costs and taxes (where applicable). Super Savings products issued by Australian Retirement Trust Pty Ltd (ABN 88 010 720 840, AFSL No. 228975) as trustee for Australian Retirement Trust (ABN 60 905 115 063). Consider the Super Savings PDS and TMD before deciding.
2 Each investment option has a different performance objective, risk profile, asset allocation and investment style which may also change from time to time. Each of these features may be significant in respect of the investment return for any option. For full details of each option, refer to the Super Savings Investment guide. For details of the fees and costs that apply to each option, refer to the Super Savings guide.
3 Results apply to Sunsuper, but Australian Retirement Trust’s Super Savings options have adopted the same investment strategy.