They have been named and shamed!
Last year, 2019, chief regulator, The Australian Prudential Regulation Authority (APRA), who is an independent statutory authority that supervises institutions across the banking, insurance and superannuation financial system has released the worst performing superannuation funds in the country.
These underperformers are making dreary returns for their clients and on top of that, charging them high fees in return for dull financial results.
On December 10th, 2019, APRA released their much awaited ‘heatmap’ tool, which “provides assessments of the performance of every MySuper superannuation product.”
“The heatmap provides stakeholders with transparency on the outcomes being delivered by all trustees providing MySuper products. It is designed to lift industry practices and enhance member outcomes by publicly identifying which MySuper products are underperforming and the areas they need to improve.”
This is a serious issue for every Australian, as underperformance from superannuation firms can cost an individual hundreds of thousands of dollars, even upwards, of people’s hard earned money over the course of their working life.
In regards to fees being paid on a $10,000 balance, Goldman Sachs came is as the worst performer, charging a jaw dropping 4.37 percent. With First Super, Pitcher Retirement Plan, IAG and NRMA joining them as the bottom five.
Pritcher Retirement Plan
For fees on a $50,000 balance, Pritcher Retirement Plan came out as the worst performing, charging their clients 1.93 percent in fees. Maritime Super, First Super, TWU Super and Club Super followed closely behind them.
The Big Banks
APRA has also acknowledged and identified problems with MySuper options offered by the following big banks or larger super firms; AMP, Christian Super, Mine Super, Westpac-owned BT, Mercer, NAB and Russell Investments. Identifying that 19 funds are currently underperforming.
The new Heatmap Tool has not come without an overwhelming amount of defense from the above mentioned, and many more who have been under the microscope.
Only minutes after APRA released the tool late last year (2019), the Financial Services Council (FSC) released a statement that “cautioned that APRA’s MySuper Heatmaps released today should not be used to rank superannuation products.” We must take into account however, that FSC represents AMP and Westpac owned BT Financial Groups, who were found to be some of the top underperformers.
Ian Silk, AustralianSuper CEO has commented on the new Heatmap Tool, stating,
“In a compulsory universal system, it should not be possible to be defaulted into a persistently underperforming fund. The heat maps are hopefully going to be an important mechanism to achieve that end.”
Is your superannuation underperforming? Do you need to find a better alternative?
Top Performing Superannuation
Did you know you are now able to use your superannuation to invest in cryptocurrencies?
In 2014, the Australian Taxation Office (ATO) issued two taxation determinations clarifying that Bitcoin and cryptocurrencies like Bitcoin are not money but are capital gains tax (CGT) assets. This new development now legally allows for Self Managed Super Funds (SMSF) to invest and transact in cryptocurrencies.
Through a self-managed super fund (SMSF), you are able to take control over your financial future putting you in the drivers seat for your own superannuation strategy.
There is no doubt that cryptocurrencies have taken the world by storm, with an ever-increasing interest in the relatively new financial area. SMSF holders worldwide are turning to crypto’s to fast track their super funds, and receive returns that have never been seen before.
In Australia, it is now completely legal to invest in cryptocurrencies with you SMSF, with the Australian Taxation Office (ATO) providing very clear guidelines and regulation on what you can and cannot do when it comes to your investment.
NGSCrypto is the sole Australian crypto mining company that is superannuation and retirement savings approved, following strict laws and regulations set by the ATO and the Australian Securities and Investment Commission (ASIC).
NGSCrypto has worked closely with industry leaders and appropriate governing bodies throughout 2018 to become fully complied under ASIC and the ATO, successfully securing a positive key affiliate relationship with one of Australia’s biggest and most successful financial wealth analyst companies, who currently have over $1.5 billion under management. Through this partnership Australians now have the financial opportunity to explore and take full advantage of NextGen Systems unique investment model.
Proud to be one of Australia’s leading digital asset mining firms, NGS Crypto is delivering fascinating returns on SMSF, that cannot be matched elsewhere. Members are receiving a minimum of 12 percent ROI per annum.
The Benefits Of Investing Your Super With NGS Crypto
– Returns on your superannuation are between 12 and 19 per cent per annum.
– All returns are paid DAILY in Bitcoin.
– We are 100 per cent compliant under ASIC and the ATO
– 100 per cent of your initial investment is credited back to your NGS account at the end of your 36-month agreement, for you to either withdraw or re-invest
– $0 upfront fee to transfer your superannuation across, which can costs thousands.
If you are a victim of an underperforming superannuation fund and need to get your financial future back on track, contact us today.