Annual superannuation performance test

QSuper Socially Responsible option failed annual superannuation performance test

The QSuper Socially Responsible option is closed from 1 July 2024. If you have money invested in this option, we'll automatically switch you to the Socially Conscious Balanced option. Visit the Info hub to learn more.

The QSuper Socially Responsible option failed the annual superannuation performance test run by the Australian Prudential Regulation Authority (APRA) at 30 June 2023. This test measured the 9-year investment return of the option against an expected investment return benchmark, net of fees.

Please read on for more information about what this may mean for you.

Find out more about the short and long-term performance of the QSuper Socially Responsible option.

FAQs Show all Hide all

What's the annual superannuation performance test? Show content

APRA is the prudential regulator that supervises the operation of Australian banking, insurance and superannuation businesses. The performance test is an annual government test run by APRA which checks how much a super product has returned (after fees) over the last 9 financial years. It compares a product’s investment returns against a specific benchmark.

In the 2022-23 financial year, APRA added choice options such as the Socially Responsible option to the annual test.

Only Accumulation account and Transition to Retirement Income account products are tested. Retirement Income account products aren’t included in the test.

How does APRA determine its investment return benchmarks? Show content

APRA compares the performance of each investment option against its strategic asset allocation (SAA) benchmark.

The SAA benchmark is calculated by multiplying the exposure of each asset class (like shares, fixed income, and real estate) to APRA’s asset class benchmark returns, and then grouping them together to calculate a total benchmark portfolio return.

An option fails the performance test when its rolling annualised net investment return underperforms APRA’s calculated SAA benchmark by more than -0.5% per annum over the test period. For the QSuper Socially Responsible option, the test period as at 30 June 2023 is 9 years.

Why has the QSuper Socially Responsible option failed the test? Show content

The 9-year return of the QSuper Socially Responsible option as at 30 June 2023 is lower than APRA’s benchmark figure.

View the short and long-term investment performance of the Socially Responsible option.

Between 1 July 2020 and 30 June 2023, the investment strategy for this option was designed in response to members’ requests for a socially responsible investment option that sought to target investments in companies and assets that would make a positive impact on certain environmental and social issues (also known as sustainability-themed investing), while seeking to minimise exposure to investments in fossil fuels, gambling, and adult entertainment.

More recently, the main asset classes that contributed to the failure by the QSuper Socially Responsible option of the performance test were property (real estate) and listed shares (equities).

The property underperformance is due to material reductions in the value of some of our US office assets. This accounted for more than half of the underperformance of the investment option in the 2022-23 financial year.
The listed shares (equities) component of the QSuper Socially Responsible option underperformed the broader listed equity market.

Does this mean my investment had a negative return? Show content

No, failing the performance test doesn’t necessarily mean your investment had a negative return. It means that the 9-year return of your investment option was lower than APRA’s benchmark figure.

As at 30 June 2023

Socially Responsible Accumulation option	9-year, per annum
Net investment return¹	4.5%
Benchmark return²	5.5%

View the short and long-term investment performance of the Socially Responsible option.

Are you making any changes to the QSuper Socially Responsible option? Show content

The QSuper Socially Responsible option is closed from 1 July 2024. If you have money invested in this option, we'll automatically switch you to the Socially Conscious Balanced option. Visit the Info hub to learn more.

We encourage members to review their investment options to make sure they are still appropriate for their needs and consider speaking with a professional advisor.³

How does the QSuper Socially Responsible option integrate ESG factors into its new investment strategy? Show content

Consistent with the investment strategy since 1 July 2023, the QSuper Socially Responsible option invests in line with an extended set of environmental, social, and governance (ESG) principles. This option employs multiple sustainable investment approaches, including negative (exclusionary) screening for shares, ESG integration, and sustainability-themed investing, as set out in the QSuper Investment Guide.

We encourage members to review their investment options to make sure they are still appropriate for their needs and consider speaking with a professional advisor.³

What if I want to move my investment to a different option? Show content

Your investment goals for your super are likely to change over time. Members should review their investment options to make sure they are still appropriate for their needs and consider speaking with a professional advisor.³

If you'd like to switch investment options, log in to Member Online. We don’t charge fees when you switch investment options, and you can change anytime. Please consider whether moving your super during market ups and downs could lock in a loss.

You can also contact us if you need more information about our investment options.

You should seek personal financial advice if you need help making an informed decision when choosing your investments.³

Review your current investments in Member Online

Explore the suite of QSuper investment options

Speak to your financial adviser or explore your advice options

Footnotes Show content

1. The figures shown reflect the returns of the investment option, not the returns of your investment in that option as they do not take into account the timing of contributions, investment switches or withdrawals. All returns are net of fees and tax, excluding administration fees. Other fees and costs may apply to your investment. If you have insurance, premiums will apply. Returns are based on member 30 June 2023 prices. Returns cover the period up to the date of merger as QSuper and from date of merger, 28 February 2022, to 30 June 2023 as part of Australian Retirement Trust. Past performance is not a reliable indicator of future performance. Each of our options has a different objective, risk profile, and asset allocation. Visit our investment options section for more detailed information.

2. Internally estimated and exclusive of the benchmark representative administration fees and expenses (BRAFE). The final figure calculated by APRA may differ. For periods greater than one year, the return is a compound annualised return. Past performance is not a reliable indicator of future performance.

3. Deciding what is best for you will depend on your personal circumstances, and you may want to seek personal financial advice to get the most from your superannuation. Advice about your QSuper account is included with your membership. You can find out more about financial advice options at qsuper.qld.gov.au/advice, or by calling us on 1300 360 750.

Employees in the Australian Retirement Trust group provide advice to members and employers as representatives of QInvest Limited. QInvest Limited (ABN 35 063 511 580, AFSL 238274) is wholly owned by the Trustee as an asset of Australian Retirement Trust. QInvest Limited is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide at qsuper.qld.gov.au/disclosure for more information.