“Fat cat” super funds are gouging super returns – is yours one?

If your superannuation fund were a cat, would it be sleek and active, or fat, lazy and spoiled?

Well now you can find out instantly, thanks to this fast online tool.

the 2015 Stockpot Fat Cat Funds report analysed more than 3300 super funds, representing a quarter of the Australian superannuation and investment system, and names the worst and best performing funds, based on fees and long-term performance.

In all, they found an incredible 701 products were what they call “Fat Cat Funds” – that’s one in five of the funds studied that Stockpot says charges excessive fees and therefore provides lower returns.

The organisation’s CEO, Chris Brycki said, “For the second year running ANZ (OnePath) has the most ‘Fat Cat Funds’ – with a grand total of 277. Second was CommBank (Colonial First State) with 67, AMP/AXA with 64, Westpac (BT) with 60 and NAB (MLC) with 39.

“The biggest take away from these results is consumers are being kept in the dark by their banks and advisers, about the devastating impact that high fees are having on their long term savings. Seventy-two per cent of ‘Fat Cats Funds’ come from the big four banks or AMP, and the total fees paid by consumers to these funds is $790 million per year.”

In the ongoing battle between industry superannuation versus retail superannuation – the 2015 Stockpot Fat Cat Funds report shows industry super funds come out on top.

“Good returns are meaningless if they are being eroded by high fees,” said Mr Brycki.

The best super funds earn the right to call themselves “Fit Cats”, while the worst performers are “Fat Cats”. To find out how your fund stacks up, use the online tool here.

Are you happy with your superannuation fund? Do you compare it to others to make sure you’re getting the best returns? 

 

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