ART pinged by ASIC over misleading returns data

Australian Retirement Trust (ART) was fined by the regulator after it was found to have showcased better returns than what was really being achieved for its MySuper option.

ASIC alleged ART misled consumers by publishing outdated performance data for its Lifecycle Investment Strategy between July 2023 and July 2024.

This was because the fund allegedly incorrectly published the 10-year performance data to the end of June 2022 throughout financial year 2024, which made the performance look better than if it were calculated to end of June 2023.

According to Rainmaker Information data, for FY22 the 10-year return on the option was 8.7%. By June 2023 end, this had dropped to 8.1%.

ASIC said the use of "superseded and inaccurate data" gave consumers "the impression that the average performance of the option over the past 10 years was better than it was."

The information was provided via the Super Savings Product Dashboard on the fund's website.

As a result, the fund was handed an infringement notice to the tune of $18,780. ART paid the infringement notice, however doing so is not an admission of guilt.

"ASIC issued this infringement notice because we were worried that the outdated data published on ART's website could lead consumers to believe that the Lifecycle Investment Strategy's performance was better than it truly was," ASIC deputy chair Sarah Court said.

"Superannuation is the largest asset of many Australians outside their family home. This notice is a reminder that it is imperative that Australian consumers are given accurate information to assess fund performance, especially in circumstances where they might be considering switching funds."