Archived - MySuper Product Heatmap FAQs

APRA has not made any changes to the MySuper Product Heatmap methodology and metrics related to the proposed annual performance test for December 2020 as the proposed legislation supporting the annual performance test was under consultation at the time of publication. APRA will review the Heatmap and consider any necessary changes when the legislation is finalised.

In the Heatmap, investment performance is assessed through a range of metrics, including performance against benchmark portfolios (Simple Reference Portfolio and Listed SAA Benchmark Portfolio) and performance relative to peers. The proposed performance test most closely resembles the ‘Listed SAA Benchmark Portfolio’, although APRA notes that two measures are not the same. The differences between the annual performance test, as described in Your Future, Your Super Reforms to make your super work harder for you (October 2020), and the ‘Listed SAA Benchmark Portfolio’ are:

The ‘Listed SAA Benchmark, which is the measure that most closely resembles the proposed annual performance test, is currently located in the expanded view of the Heatmap. However there are some differences between the measures as noted in FAQ No. 2 above.

APRA will continue publishing heatmaps as heatmaps play a core role in APRA’s strategic focus on improving outcomes for superannuation members by improving industry transparency. Heatmaps provide credible, clear and comparable insights into key financial aspects that influence member outcomes, including investment performance, fees and costs, insurance, and sustainability of member outcomes. By holding trustees publicly accountable for their performance, APRA will drive a culture of continuous improvement and improved efficiency across the entire superannuation industry.

APRA will review its heatmaps and consider any necessary changes when the legislation supporting the Your Future, Your Super measures are finalised. 

The 2020 MySuper Product Heatmap will be released in December 2020.

Similar to the 2019 MySuper Product Heatmap, the 2020 MySuper Product Heatmap will show the outcomes being delivered to MySuper members in the areas of investment performance and fees and costs. The Heatmap will also provide indicators of trends in a trustee's operations relevant to the sustainable delivery of member outcomes.

Yes.

The investment performance and sustainability of member outcomes metrics will be based on data as at 30 June 2020. The fees and costs metrics will be based on Product Disclosure Statements as at 1 October 2020.

The 2020 MySuper Product Heatmap will include data received by APRA via Direct to APRA (“D2A”) by 5pm on 29 October 2020.

Any updated data received by APRA after 5pm on 29 October 2020 will not be included in the 2020 MySuper Product Heatmap. This data will be included in the following publication of the 2021 MySuper Product Heatmap, planned for release in December 2021.

APRA’s decision to solely publish fee data reflects the purpose of the update – to show actions taken by trustees to address areas of underperformance, which APRA considers can reasonably be expected to have occurred since the first Heatmap was published in December 2019.

Improvements to investment performance and sustainability would be expected to manifest over a longer timeframe, and hence will be updated in later Heatmap publications.

APRA is planning to publish updates to all components of the Heatmap – investment performance, fees and costs and sustainability – in December 2020. 

The document Supplementary Workbook – Fees and costs changes includes the fees and costs shown in both Heatmaps to enable comparison, and also indicates whether the fees have increased, decreased or remained the same, and by how much.

The Heatmap is not intended to be used in isolation when making decisions about where an individual member directs their retirement savings. It does not provide the complete picture of the outcomes that a MySuper product provides to individual members. For example, the Heatmap does not currently include measures of the value or performance of insurance offered, or the quality of other features such as member services. It is also important to ask the trustee providing the MySuper product about the actions they are taking (or going to take) to address the areas where they are underperforming.

The June Heatmap is based on data received by APRA via submission of Reporting Standard SRS 703.0 Fees Disclosed by 5pm on 29 May 2020.

Any updated fees and costs submitted to APRA after 29 May 2020 will be reflected in the next publication of the MySuper product Heatmap, planned for release in December 2020.

Further to FAQ no. 10 in the general questions section, APRA will publish in June 2020, the concise and expanded ‘fees and costs’ metrics included in the December 2019 Heatmap with updated data. APRA’s decision to solely publish fee data reflects the purpose of the update - to show actions taken by trustees to address areas of underperformance, which APRA considers to reasonably be expected to have occurred since the Heatmap was published in December 2019. Improvements to investment performance and sustainability would be expected to manifest over a longer timeframe, which APRA will reflect in later heatmap publications.  

A small minority of trustees have resubmitted changes to their Strategic Asset Allocation in Reporting Standard SRS 533.0 Asset Allocation and their investment performance in Reporting Standard SRS 702.0 Investment Performance. APRA is validating these resubmissions and, if substantiated, the revised data will be reflected in the next iteration of the Heatmap, planned for release in December 2020.

Any ad-hoc submission of Reporting Standard SRS 703.0 Fees Disclosed received by APRA by 5pm on 29 May 2020 via Direct to APRA (“D2A”) will be included in the updated Heatmap to be released in June 2020. Trustees can make a request to submit an ad-hoc submission of Reporting Standard SRS 703.0 Fees Disclosed by emailing DataAnalytics@apra.gov.au. Refer to guidance on APRA’s website.¹

¹Meeting reporting obligations triggered by 'ad hoc' events

Any updated fees and costs submitted to APRA after 29 May 2020 will be reflected in the next iteration of the Heatmap, planned for release in December 2020.

APRA will publish all changes in fees and costs submitted to APRA on Reporting Standard SRS 703.0 Fees Disclosed by 5pm on 29 May 2020.