From 1 July 2021, all MySuper products will be subject to a new annual performance assessment (APA) administered by the Australian Prudential Regulation Authority (APRA), see apra.gov.au. The performance assessment is designed to enable transparency and benchmarking of MySuper investment performance.
How did the BT MySuper Lifestage investment options perform in the 2021 APA?
For Lifestage products like those offered by BT, the annual performance assessment takes into account the asset-weighted performance of all Lifestage investment options collectively to calculate a single performance return.
The combined seven-year performance of our BT Super MySuper product failed the annual performance assessment, and will be recorded as underperforming on the Australian Taxation Office (ATO)’s YourSuper comparison tool at ato.gov.au/yoursuper.
The Australian government’s Your Future, Your Super (YFYS) package – announced in the 2020-21 Budget – is a comprehensive package of reforms designed to improve outcomes for members.
In 2021, the APA looks at the seven-year investment performance (net of fees and taxes) of MySuper products, against the Government’s benchmark.
Where a MySuper product has underperformed the performance benchmark, it will have failed the APA and the Trustee must notify members.
BT’s MySuper products have seven different investment options. These different investment options are called Lifestage investment options, and are assigned to members depending on which decade they were born, ranging from the 1940s to the 2000s.
The BT MySuper Lifestage investment options that were a part of the 2021 APA are listed below:
BT Super and BT Super for Life
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BT Super MySuper 1940s Lifestage
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BT Super MySuper 1950s Lifestage
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BT Super MySuper 1960s Lifestage
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BT Super MySuper 1970s Lifestage
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BT Super MySuper 1980s Lifestage
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BT Super MySuper 1990s Lifestage
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BT Super MySuper 2000s Lifestage
The Lifestage investment options have strategic asset allocations carrying different levels of exposure to investment risk depending on the decade in which you were born.
BT designed the Lifestage investment options in this way to have a higher allocation towards growth assets when members are younger and, over time, gradually increase investments in defensive assets to help cushion account balances from negative market movements as members approach retirement.
What is BT doing about the annual performance assessment result?
Managing the retirement savings of our members is a responsibility we take very seriously.
We have worked hard and invested heavily to improve member outcomes and are seeing the result of this in our recent performance.
We’ll continue to look for ways to provide better performance outcomes for our members, be it reviewing our investment strategies, our fees, or our services. In addition, over the past five years we’ve also enhanced our member tools, educational offering and digital experience to make it easier for our members to understand and manage their super.
What does this mean for members?
If you are a MySuper member, APRA requires us to notify you that our MySuper product has not passed the new annual performance assessment. In September 2021, you will receive a letter in the post and an email if we have a nominated email address for you.
Your super is an important investment for your future, so you should regularly check in with your investments to learn more, and see if they’re right for you.
It’s also important to do your own research to familiarise yourself with the features of your super fund (including insurance you may have and any Employer Plan benefits), and you might also consider financial advice to help with your own circumstances.
A summary of the recent performance of the Lifestage investment options is included below.
| INVESTMENT OPTION | 12 months to 30 June 20211 |
|---|---|
| 1940s BT Lifestage investment option | 8.36% |
| 1950s BT Lifestage investment option | 10.29% |
| 1960s BT Lifestage investment option | 16.94% |
| 1970s BT Lifestage investment option | 25.52% |
| 1980s BT Lifestage investment option | 25.63% |
| 1990s BT Lifestage investment option | 25.56% |
| 2000s BT Lifestage investment option | 25.10% |
View the past performance of your BT Super or BT Super for Life Lifestage investment options:
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YourSuper comparison tool at ato.gov.au/YourSuper
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Choose a financial adviser at moneysmart.gov.au/financial-advice/choosing-a-financial-adviser
1. Performance figures are calculated in accordance with the APRA reporting standards. Total returns are calculated using withdrawal prices appropriate for the month end and take into account management costs, the dollar based and percentage-based administration fees, and earnings tax up to a maximum of 15%. Additional costs apply and vary by investment option. Refer to the Fees and Costs section of the Product Disclosure Statement (PDS) for details.
This information is current as at 30th August 2021 and is prepared by BT Funds Management Limited ABN 63 002 916 458 (BTFM) the trustee of BT Super and BT Super for Life – part of the superannuation fund Retirement Wrap ABN 39 827 542 991.
This information is of a general nature only and does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to your personal objectives, financial situation and needs before acting on it. Read the Product Disclosure Statement (PDS) to see if these products are right for you by visiting bt.com.au. Any tax considerations are general statements based on current tax law. You should obtain your own tax advice about your personal circumstances.
BTFM is a member of the Westpac Banking Corporation ABN 33 007 457 141 (Westpac) group of companies. An investment in a BTFM product is not an investment in, deposit with or any other liability of Westpac, any division of Westpac or any other company in the Westpac Group. Past performance is not a reliable indicator of future performance. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of the product or any related assets of the product.
© BT – Part of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.