Stockspot’s most recent annual Fat Cat Funds Report reveals the super funds that charge high fees and deliver low returns and, unsurprisingly, bank funds are the biggest culprits.
The report showed that ANZ, AMP and CBA were the worst offenders.
However, the banks have hit back, saying the report is “substantially overstated”.
Regardless, figures found in the research revealed how some Australians stand to lose up to $100,000 from every $400,000 they put into super, simply due to high fees and poor returns.
The Stockspot study examined 4100 super funds worth around $709 billion. Of these 4100 funds, 521 were deemed to be fat cats, worth around $45.59 billion. Around $600,242,623 in fees are paid to fat cat funds each year. The average fee charged by fat cat funds is 1.99 per cent.
Funds that underperform other funds by more than 10 per cent are deemed fat cats. Two thirds of all fat cat funds are managed by the Big Four banks.
And bank-owned funds weren’t the only ones who fell into the fat cat category: two per cent of all industry super funds are fat cats, compared with 13 per cent of all retail funds.
The Fit Cat Awards were also announced, with Folkestone Maxim Asset Management taking out the top spot, followed by Forager Funds Management, Firstmac, Supervised Investments Australia Ltd and Equity Trustees.
Find out if your super fund is a fat cat or a fit cat at www.stockspot.com.au
Do you know how much in fees you pay each year? Are you surprised that bank-owned funds are the worst offenders? Is your super fund a fat cat?