The industry watchdog, Australian Prudential Regulation Authority (APRA), has savaged the big for-profit funds in its super performance test.

Not-for-profit industry super funds, including HESTA, dominate the top 10 performing super funds for 2022–23, according to SuperRatings.

“A rebounding share market has delivered Australia’s six best-performing funds double-digit returns in the past financial year, while the top 10 delivered an average return of 9.5 per cent,” reported the New Daily.

“That’s a sizeable turnaround from the 3.4 per cent loss reported a year ago as the share market suffered a COVID-19 hangover amid soaring inflation and the start of interest rate hikes.”

Meanwhile, APRA has released the results of the 2023 superannuation performance test.

The annual test is designed to improve outcomes for members by assessing long-term performance against benchmarks.

ACTU Assistant Secretary Joseph Mitchell said the results “once again illustrate the significant and persistent underperformance of for-profit super funds”.

“Ninety-eight per cent of products that failed the performance test were from a for-profit or non-industry fund,” he said.

“Industry super funds consistently perform better and are governed better.

“The banking royal commission showed working people are often sold into choice products by for-profit providers and it is important that they have a clear understanding of the performance of their retirement savings demonstrated through performance testing.