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 it passes subsequent annual performance tests.
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.
What do advisers need to do?
There is no immediate action required for you or your clients prior to the APT results being announced. However, when announced, you will need to consider what the APT results means for your clients, and you should refer to your licensee’s advice policies for guidance.
Licensees may need to review their Approved Product List (APL) once APT outcomes are released.
Where can clients go for support?
Clients can call the North Service Centre on 1800 667 841 or contact North via email at the North mailbox northenquiries@amp.com.au.
Support and more information
Please review the support materials below for more information:
- Detailed FAQs
- Sample client letter as prescribed by the regulations
- Sample cover letter from the Trustee
We’ll provide further information on the APT results via Product Flash week commencing 2 September 2024.
If you have any questions, please speak to your Business Development Manager (BDM).
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