The Choice Product Heatmaps revealing the sector is littered with poor performing products underlines the need for crucial super fund performance test to be applied to the entire system.
Less than 40% of the Choice system was covered by the Heatmaps and will be tested under the Your Future, Your Super performance benchmarks – leaving the retirement savings of millions of Australians untested.
The Choice Heatmap confirmed the Productivity Commission findings that the sector had higher fees but delivered limited extra benefit to members. To exclude 60% of that sector from scrutiny and assessment can only harm members.
Shielded from performance tests are pension products, third party investment options via platforms and single asset investments. Also carved out are cash only products that the Banking Royal Commission savaged for delivering negative returns.