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Barefoot Investor warns Australians to change super fund now

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By Kylie Stevens For Daily Mail Australia

00:12 02 Jun 2023, updated 00:14 02 Jun 2023

  • Regulator names underperforming super funds
  • $10billion in retirement savings in underperforming funds
  • Barefoot Investor says Aussies need to be concerned 



The Barefoot Investor Scott Pape has named and shamed Australia’s worst-performing superannuation funds.

The Australian Prudential Regulation Authority has released its annual report, which rates super products.

Australia’s financial services industry regulator’s latest report card revealed one in five ‘choice’ super products had significantly underperformed the regulator’s benchmarks.

Pape says Aussies should be concerned if their retirement nest egg is sitting in an underperforming fund.

Barefoot Investor Scott Pape (pictured) has named and shamed Australia’s worst performing super funds listed in the APRA External Report

Pape broke down the APRA report by naming and shaming the worst performers.

OnePath was singled out in the report, with the company managing a whopping 33 underperforming super funds.

‘OnePath was like my Year 8 report card: a total and utter s**t earing show (as my father would say),’ Pape wrote.

OnePath wasn’t the only superannuation company in the firing line.

BT Funds Management, Colonial First State, Auscol (Mine Super), Perpetual Super, MLC Super all earned a mention from Pape for their ‘significantly poor performance’.

Verve Super, Spaceship Super (who target millennials), Student Super Cruelty Free Super also came under scrutiny for their high administration fees.

Last but no least, Equity Trustees got a mention for both high fees and poor returns.

An estimated $10 billion in retirement savings sit in underperforming funds as Pape doubled down on his attack on underperforming funds.

‘Many of them are not taking on new customers – because, well, who the hell would actively choose to join them?! However, they’re still more than happy to continue milking their existing customers with high fees and/or poor performance,’ he wrote.

‘Because, unlike their customers, the people that run the funds are making seriously good profits!

‘Their only way of keeping this going is to hide their report card, and hope you forget to ask.’

WHAT SCOTT PAPE SAYS ABOUT POORLY PERFORMING SUPER FUNDS 

What you’re about to read is going to get me into trouble.

So I’m going to cut to the chase: to all the marketing managers of the products I’m about to mention, please email my assistant: [email protected]

When I was a kid, I used to try and hide my school report from my parents, hoping they’d simply forget (this was in the days before email, and helicopter parenting).

Yet my plan was always foiled by my older sister, who was the dux of her class, and waited in anticipation all year for her brief bath in the parental sunshine.

Mole.

Well, the Government just released a (long, confusing, boring) report card – it’s called the APRA External Report (www.apra.gov.au) – on your super fund, and the worst super funds are hoping that you never read the report.

So let’s dig in.

OnePath was like my Year 8 report card: a total and utter sh … earing show (as my father would say). OnePath was singled out by the regulator for having no less than 33 dud super funds.

Thirty-three!

OnePath was joined in veggie maths by BT Funds Management, Colonial First State, Auscol (Mine Super), Perpetual Super, MLC Super – whose report cards revealed “significantly poor performance”.

Some of the funds that were singled out for charging high admin fees include Verve Super (who market to women), Spaceship Super (who target millennials), Student Super (who need a detention), and the ironically named Cruelty Free Super (well, except for their barbaric admin fees).

And last but not least, Equity Trustees appear to be really struggling with their pencil grip, after being singled out by the regulator for both high fees and poor returns.

Am I being too harsh?

I don’t think so.

There is currently around $10 billion of our retirement savings sitting in underperforming funds. Many of them are not taking on new customers – because, well, who the hell would actively choose to join them?! However, they’re still more than happy to continue milking their existing customers with high fees and/or poor performance.

Why?

Because, unlike their customers, the people that run the funds are making seriously good profits!

Their only way of keeping this going is to hide their report card, and hope you forget to ask.

Don’t let them.

Tread Your Own Path!

The Barefoot Investor described one superannuation company’s rating in the regulator’s report as a total and utter s**t earing show



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