The Australian Prudential Regulation Authority (APRA) has unveiled the results of its 2025 superannuation performance test, a vital measure aimed at enhancing transparency and outcomes for fund members. Conducted annually for the past four years, this test scrutinises long-term performance across a wide array of superannuation products.
In the latest assessment, APRA evaluated a total of 563 superannuation products: 52 MySuper products, all of which passed the test, and 374 non-platform trustee-directed products, which similarly all succeeded. However, among the 137 platform trustee-directed products—where trustees have control over investment strategies—seven did not meet the performance criteria, a significant drop from the 37 failures recorded in the previous year.
The performance test targets MySuper and trustee-directed products, representing 62 per cent by value of the APRA-regulated superannuation sector. APRA Deputy Chair Margaret Cole expressed optimism about the findings, stating, “Since the introduction of the performance test in 2021, APRA has seen real progress in reducing underperformance for products subject to the performance test. The number of members in products that did not pass the test decreased from 1 million to 8,500.”
Despite positive trends, APRA highlighted concerns regarding platform trustee-directed products that experienced underperformance partly due to the application of rebates. While these rebates can be beneficial for members, the authority will engage with relevant trustees to emphasise the importance of sustained performance improvement.
In a move to enhance the availability of data, this year’s performance test results were published alongside APRA’s Comprehensive Product Performance Package (CPPP). This package aims to provide deeper insights and greater transparency by employing a broader set of performance measures.
The results indicate a continuing trend of underperformance among trustee-directed products on platforms. While these offerings allow for increased investment options and flexibility, APRA noted that more than 40 per cent of products with a 10-year performance history are currently exhibiting significant investment underperformance.
