The not for profit and industry funds have again dominated the Chant West 2010 superannuation fund ratings. This is despite master trusts performing well as the economy escapes from the effects of the GFC.
“While investment is very important and accounts for 40% of our overall weighting, past performance only counts for 10% of that,” says Chant West principal, Warren Chant.
“We don’t rate funds higher or lower just on the basis of one year’s performance. Otherwise we’d have downgraded a lot of master trusts when they performed relatively poorly in 2008, and then upgraded them based on last year’s performance. It doesn’t work like that. What we look for is the quality of their investment philosophy, process and people, including their in-house resources and external asset consultants. That doesn’t necessarily change just because markets move against you in the short term.”
The reason for not-for-profit funds achieving higher ratings is to be found in their overall value proposition, Chant says. “The better industry funds have relatively low administration fees, excellent investment processes, low cost insurance and an increasing range of member services, including some excellent member education. It’s the total package they offer that results in them scoring highly.”
The Top 10 personal super products are listed alphabetically below. The only addition to last year’s Top 10 is Colonial First State, with its FirstChoice Wholesale product. It is the only commercial master trust in a Top 10 dominated by not-for-profit funds.
Top 10 Rated Personal Super Funds (listed alphabetically)
- AGEST
- AustralianSuper
- CareSuper
- Colonial First State FirstChoice Wholesale
- First State Super
- Hostplus
- NGS Super
- REST
- Sunsuper
- UniSuper
