The Australian government announced the “Your Future, Your Super” (YFYS) reform package in the 2020-21 Budget, with the YFYS Act coming into effect on July 1, 2021. Under the YFYS reforms, the Australian Prudential Regulation Authority (APRA) is required to conduct an annual performance test for MySuper products, which is intended to hold the funds to account for potential underperformance. This article looks at the wealth of historical information available to us from across different pension funds globally, apply the YFYS test retrospectively to their historical results, and try to assess whether the YFYS test – had it been applied to global pension funds from 1992 through 2020 – would have been able to accurately spot those funds that were likely to be long-term under-performers.
