The Annual Performance Test (APT) is part of the Your Future, Your Super (YFYS) reforms and is intended to assess a superannuation investment product’s long-term performance, over a ten-year period.
This is the second year that APT applies to Trustee-Directed Products (TDPs) including multi asset investment options across all super and non-commutable allocated pension (NCAP) products available through our wrap platforms.
Investment options which don’t meet the benchmark as set out by the regulations will be classed as underperforming, and the Trustee is required to write to all clients who hold these investment options at the time of APRA notification as well as publishing the outcomes on the public website. The Trustee is required to provide these communications within 28 days of being notified by APRA.
If an investment option fails the APT over two years consecutively, it must be closed to new members (until such time that it passes subsequent annual performance tests).
What do advisers need to do?
There is no immediate action required from you or your clients. When considering what this means for clients, you should refer to your licensee’s advice policies including approved product list (APL) to identify any advice implications.
It’s expected that APRA will complete the test by the end of August 2024 and notify the Trustee and publish the APT results shortly after.
More information
We’ll provide further information and support materials in July and August.
If you have any questions, please speak to your Business Development Manager.
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