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9 September, 2021
Super fund performance
First Financial Team
On 31 August 2021, the Australian Prudential Regulation Authority (APRA) released results from their first MySuper Product Performance Test. The test is part of the Australian Government’s Your Future, Your Super (YFYS) reforms.
These reforms came into effect on 1 July 2021 and are designed to improve the efficiency, transparency and accountability of the superannuation industry.
The results highlighted thirteen MySuper products that failed the test and there were some big names included in the list.
We now look at the bottom 10 worst performing super funds in 2025 and James Wrigley, First Financial Principal, discusses why our clients are protected from these poor super fund performances.
Your Future, Your Super reforms
The Government’s YFYS reforms focus on tightening the regulatory framework around superannuation. The Treasury states:
“Your Future, Your Super makes the superannuation system better for members in four key ways:
- Your superannuation follows you, preventing the creation of unintended multiple superannuation accounts.
- Empowering members, by making it easier for you to choose a well-performing product that meets your needs.
- Holding funds to account for underperformance, protecting you from poor outcomes and encouraging funds to lower costs and fees to boost Australians’ retirement incomes.
- Increasing transparency and accountability for how superannuation funds use members’ savings.”
APRA’s performance test
The inaugural APRA performance test assessed MySuper products and looked at two separate sets of data: the average investment returns over the last eight years versus a specific benchmark and the total cost of administration fees for the last financial year versus a benchmark. Products failed the test if they underperformed the benchmark by more than 0.5%.
APRA’s media release says:
“There are 80 MySuper products. APRA has assessed 76 MySuper products with at least 5 years of performance history against the objective benchmark. A total of 13 products failed to meet the objective benchmark.
Trustees of failed products are required to write to members by 27 September 2021 advising them of their Performance Test outcome and providing the details of the ATO’s YourSuper comparison tool.
As well as scrutinising the plans of the 13 funds that failed the test in 2021, APRA is engaging with trustees at risk of failing the performance test next year to ensure they take the steps necessary to improve performance, and to understand their contingency plans. These contingency plans must include pre-positioning to be able to give effect to an orderly transfer of members to another fund, if required.”
Worst performing super funds 2025
We have listed the 10 worst performing super funds of 2025 below, but James highlights that while there are recognisable names within the list, First Financial clients are not exposed to the individual products.
“MySuper is the default investment option within the superannuation fund, often it’s one of many options available. So it’s possible to have one investment option in a super fund as a top performer and that same super fund be a poor performer – it will all come down to the particular investment option you are in.”
It can be confusing… especially when you also see some similar funds in the best performing fund list, but it’s all about the particular investment option you have taken.
Worst Performing Super Funds 2025: 10-Year Net Return
Super Fund |
Annual Fee |
10-Year Net Return |
| Smart Future Trust | $397 – $417 | 3.29% – 7.53% |
| Australian Retirement Trust | $277 – $387 | 3.53% – 7.17% |
| AMP Super Fund (MySuper) | $399 – $489 | 4.09% – 7.47% |
| Local Authorities Superannuation Fund | $421 – $466 | 4.21% – 8.08% |
| Team Superannuation Fund | $356 – $376 | 4.28% – 8.30% |
| AMP Super Fund (AFLPA AFL MySuper) | $309 – $399 | 4.32% – 7.71% |
| Telstra Superannuation Scheme | $397 – $522 | 4.41% – 7.64% |
| Essential Super | $375 – $395 | 4.44% – 7.91% |
| Retirement Portfolio Service (ANZ) | $505 – $540 | 4.44% – 7.63% |
|
Colonial First State FirstChoice Superannuation Trust
|
$380 – $400 | 4.45% – 7.83% |
| Retirement Portfolio Service (ANZ – QBE Super Plan) | $505 – $540 | 4.45% – 7.64% |
As of 16 September 2025 | Source: https://www.ato.gov.au/single-page-applications/yoursuper-comparison-tool
Speak to your financial adviser
This framework allows Australians to use the YourSuper Comparison Tool to make informed financial decisions. However, when it comes to your personal circumstances, seeking professional advice is always recommended.
We understand this information is complicated… but we are confident in the investment options we recommend. Here at First Financial, we have a dedicated team of professionals that constantly monitors super fund performance to achieve the best possible outcomes for our clients.
It’s important to partner with someone who can keep you informed and on track. To find out how we can help you make the most of your superannuation, please contact our team today.
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