Chart of the Week: Putting the Super performance test to the test
Analysing the 2025 Your Future, Your Super performance test results.
This week’s insights come from the Manager Research team’s ‘Putting the Performance Test to the Test’ report. This analyses APRA’s recently released results from the Your Future, Your Super performance test.
Failure rates are falling
Whether it’s by dollar value or number of products, there has been a remarkable decline in failure rates. In 2021, products worth a combined AUD 56 billion failed the test. This year, the figure was AUD 1 billion. While a large number at first glance, it represents just 0.06% of the entire testable universe by value.
In 2021, around 1 million members were in failed products; in 2025, just 8,500. In 2021, 1 in 14 members were in failed products; this year, it was 1 in nearly 2,500.
Members are understandably asking the question: “Has the test succeeded in its goal of removing uncompetitive products from the market, or have trustees simply figured out how to maximise their odds of passing it?” While this remain an open question, one thing is certain - in August 2025, the Australian government confirmed that the test is now actively under review, although the scope of changes (if any) are yet to be confirmed.
Profit-to-Member funds shine through
MySuper products are the largest tested cohort by value, representing AUD 1.2 trillion in value and 16 million members. While every MySuper option passed the test, ranking the data by performance quartiles reveals some clear trends.
When it comes to performance, profit-to-member funds dominated their for-profit, retail fund peers. The absence of a profit motive begets lower overall fees, which certainly helps.
Source: APRA, Morningstar Manager Research. Data as of Aug. 29, 2025. Financial year ended June 30, 2025.
Interestingly, the only for-profit MySuper option in the first quartile - Mercer Super’s Lutheran Superannuation product - is worth a tiny AUD 391 million and caters for just 3,650 members; on both counts, it is among the smallest MySuper options in the market.
While being a member of a profit-to-member fund elevates the odds that your product performed well in the test, it’s by no means a guarantee. For example, REST’s MySuper product-worth a remarkable AUD 80 billion and with nearly 2 million members- ranked 44th out of 50 products.
Size matters
When it comes to performance by MySuper option size, there’s a clear trend - this time, size matters. By average size, MySuper options in the first quartile were quadruple those in the bottom quartile.
Source: APRA, Morningstar Manager Research. Data as of Aug. 29, 2025. Financial year ended June 30, 2025.
Perhaps the most noteworthy result in this year’s performance test was that the first-placed MySuper product came from MIESF, a tiny, AUD 1 billion fund for 16,600 meat industry workers that blitzed the opposition by returning 1.9% per year - 2.4% per year above the pass mark. Second place on the podium also went to a small fund - the AUD 5 billion First Super.
These results were despite both funds’ MySuper options charging relatively high administration fees - a common trait among smaller funds unable to scale their operational infrastructure relative to their asset and member bases.
Ultimately, strong performance was not enough for MIESF - the fund’s small, limited member base contributed to its decision to merge into the much larger CareSuper on Oct. 1, 2025.
You can find previous editions of Chart of the Week here.
