POWERED BY MOMENTUM MEDIA
YFYS has turned past performance into future performance guide
After years of “past performance is no guide to future performance” disclaimers, superannuation funds are now being guided by past performance, according to Sunsuper.
Speaking at the Association of Financial Advisers (AFA) conference Brian Parker, Sunsuper chief economist, said the Your Future, Your Super (YFYS) performance test would drive behaviour in the industry.
“Anybody who’s worked in corporate life for an extended period of time will know that scorecards drive behaviour; what you’re going to be judged against ultimately drives your behaviour,” Parker said.
“And so, if we’ve now said to super funds this is how you’re going to be assessed, you are going to see this processed embedded into the investment decision making, rightly or wrongly.
“Those of you that have read a product disclosure statement – and I hope you all have – there’s a line there saying past performance is no guide to future performance, that’s unfortunate because we’re now telling members that it is.
“Even though seven or eight years is a meaningful time frame to consider, the fact is we are considering the performance of super funds based on past performance and benchmarks they may not have been managing against.”
Parker said the Australian Taxation Office (ATO) website would become the “ultimate source of truth” for members to get information on super fund performance.
Despite firms like SuperRatings and Chant West publishing “leader tables” for performance, it would not “move the dial” in the same way information on the ATO website would.
“One of the things we see happening over the next while is the ATO website may well become the ultimate source of truth when it comes to performance comparisons between different funds and these are going to become much more commonplace than they had been to date,” Parker said.
Recommended for you
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
