Poorest performing super funds revealed

Font Size:

The 40 worst performing superannuation funds hold $5.5 billion and charge Australians a staggering $117 million in fees each year.

Online investment adviser stockspot.com.au has released its eighth annual Fat Cat Funds Report, revealing the worst performing and best performing funds for 2020.

The research found that fees and poor performance could result in individuals losing up to $200,000 by the time they reach retirement age.

AMP, which has been listed in the worst-performing funds for every year the report has been compiled, topped the list as the worst fund this year, followed by OnePath and Macquarie.

Stockspot measures a poorly performing fund (what it terms a Fat Cat fund) as one that has been in the bottom 10 performing funds within a particular risk group (balanced, growth, etc) over five years.

A good investment fund is one that is in the top 10 funds within a risk group over the same period of time.

Not only did AMP top the list of the worst investment funds, it also made history by being the first Fat Cat fund to deliver a negative return over five years with one of their options delivering a total return of -2.2 per cent.

AMP (12) and OnePath (11) account for more than half of the top 40 worst-performing funds.

According to the Stockspot research, a typical Fat Cat fund charges 2.13 per cent in fees while a typical Fit Cat fund (referring to a strong super investment option) charges 0.97 per cent.

Unisuper was recognised as having the most top performing super funds over five years (seven), followed by IOOF (five) and Australian Super (four).

Report author Chris Brycki said the one thing that the best performing super funds had in common was that they all charged less than 1 per cent in fees per year.

“Superannuation is the biggest investment most Australians have, yet most people have no idea how much they stand to lose if they’re in a Fat Cat fund,” Mr Brycki said.

“One of the golden rules of superannuation is: the less you pay, the more you get. Always pay less than 1 per cent p.a. in fees so your super isn’t eroded by high fees.

“Unfortunately, there are almost twice as many high-fee funds (more than 1 per cent p.a. in fees) than low fee funds (less than 1 per cent p.a. in fees).”

Mr Brycki also notes that people can be reticent to change, and even when they know they’re in a Fat Cat fund, prefer to turn a blind eye than spend the 10 minutes required to save themselves serious cash in the future.

“Sadly, in the eight years of naming the worst performing Fat Cat funds, few people have moved out of these funds,” he explained.

“Retirement may seem a while away, but when you get there and realise you could have been $200,000 richer, it won’t be a good feeling.”

Do you have money invested in an AMP or OnePath super fund? Are you now worried about what your nest egg will look like in retirement?

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Join YourLifeChoices today
and get this free eBook!

By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy


Can you salary sacrifice into super and claim the pension?

Lurelle is approaching pension age and wants to know about the pension while working.

Super statement simplified – what you do need to check

They may look long and tedious, but there are key areas that you do need to check.

Written by Ben


Total Comments: 42
  1. 0

    Nope not in either.

  2. 0

    not in either and my find in is top 10 and fee is 0.33% and doesn’t invest in nrenewables scam

  3. 0

    “Do you have money invested in an AMP or OnePath super fund? Are you now worried about what your nest egg will look like in retirement?”

    We’re with an industry fund and we’re not worried about our funds or the return on the investments made by the fund. I might point out that the fees in our fund are roughly just under 2% and I mention this because the “staggering $117 million in fees each year” shown in the article for poor performing funds is roughly just over 2%. Fees are not tied to the return but are a fixed figure.

  4. 0

    Used to have money in First State Super and paid about $5,000 in fees, transferred to Australian Super and paid about $2,400 for a better return. Yes, an industry fund, you know, the ones that Prime Minister Scumbag wants to get rid of? Not part of the Old Boys Network that runs AUS, I expect.

  5. 0

    So where is the complete list ?

  6. 0

    Mmmmm, where is the complete list?

  7. 0

    Whilst mine is a smaller industry fund and rates worthy of the top 10ers (7.44% growth over 5 years), proud to say that they invest in local infrastructure and renewables.

  8. 0

    Sadly this article does not include a link to the complete list.

    Anyone know where to get the complete list?

  9. 0

    For those people enquiring about the Super Funds report. The web site is listed in the second paragraph. FAT CAT FUNDS REPORT. Click on that. If you go there you can register to get the book information.

  10. 0

    Comrade Cope, politically correct as usual!
    That’s the way

Load More Comments



continue reading


How to avoid being tracked online

The internet is most likely monitoring every move you make through your computer or device and, unless you know the...


Aussies want Morrison to refute health misinformation

Australians are fed up with the growing spread of misinformation related to the COVID-19 pandemic and want Prime Minister Scott...


The diet that can put type 2 diabetes into remission

Consuming fewer carbohydrates can potentially put type 2 diabetes into remission. An international study involving Australia's CSIRO found that strict...


CHOICE tips to take charge of 2021

Have you made a resolution to be better with money this year? After 2020, many of us could probably do...


The rules and the telltale signs that you're too old to drive

Approaching the subject of giving up driving due to age can be difficult for all involved. While driving offers independence,...


The dos and don'ts of lifting weights if you're older

If you're to believe what you see on social media, only the young and super fit lift weights. This, unfortunately,...


Pfizer vaccine safe despite Norwegian deaths, say health authorities

Is the Pfizer coronavirus vaccine safe? Health minister Greg Hunt is assuring Australians it is after it was reported that...


Great things about ageing - as Dawn French says 'it's not for wusses'

A lot of people fear growing older but, if you ask us, the ageing process brings some great benefits, too...