Industry fund dumps sustainable option

The $8 billion industry superannuation fund will close the option on June 4, it confirmed.

"After a period of observation, Prime Super has determined that the SRI Balanced option has not performed adequately to meet our performance objectives," Prime Super chief executive Raelene Seales told Financial Standard.

"As such, in the best financial interest of our members, Prime Super has made the decision to discontinue offering the SRI Balanced option from 4 June 2025."

Introduced in 2019, Rainmaker Information data shows the option 6.9% in the five years to March end, ranking 20th among super fund ESG options when the median return was 7%.

Over three years, it's 21st with a return of 3.3%; the median return was 4.8%. And over one year it's returned just 2.1% and ranks 33rd, while the median was 4.6%.

According to APRA statistics, only about 500 of the fund's 146,000 members are invested in the option; most are in the accumulation phase, with less than 60 pension or TTR members. It accounts for only $33 million of Prime Super's total funds under management.

Those still invested in the option on June 4 will be moved over to the MySuper/Balanced option.

The closure follows Prime Super announcing it will change administration fees and costs from July.