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 annum1, 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:
- Are you comfortable with the actions the fund is taking to address the failure?
- Is now a good time to consider moving your super to a better performing fund?
Comparing super funds, finding and combining your super
The ATO’s YourSuper Comparison Tool allows you to compare the performance of MySuper products from different funds.
Want to simplify your super?
Consider consolidating to put all your super in one fund with only one single set of fees. You can consolidate by logging into Member Online and selecting the “Consolidate super” tab.
Before combining your super, consider the potential loss of insurance and other benefits that you may have with your existing fund. Also, think about where your future employer contributions will be paid.
Want some financial advice?
Speak to your adviser. If you don’t have a personal financial adviser, Australian Retirement Trust has qualified financial advisers1 who can help you over the phone with simple advice about your Super Savings account. This service is included in your membership fee2. If the advice you need is more complex or comprehensive in nature, we may recommend you see an accredited external financial adviser3. Advice of this nature may incur a fee.
1Australian Retirement Trust employees provide advice as representatives of Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818 AFSL No. 227867) (SFS), wholly owned by Australian Retirement Trust. 2 Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818 AFSL No. 227867) (SFS) is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide - Member for more information. 3 Australian Retirement Trust has established a panel of accredited external financial advisers who are not employees of Australian Retirement Trust. Australian Retirement Trust is not responsible for the advice provided by these advisers and does not receive or pay any referral fees. These advisers will explain to you how their advice fees are determined.
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.