The Australian mutual fund industry is not up to scratch based on the experience of investors, a global survey by research house Morningstar has found.

Australia was among the worst of 22 countries surveyed, with only New Zealand and South Africa scoring worse.

Poor levels of disclosure and high levels of taxation on investments were particular sore points.

"Australia has major problems with disclosure," the researchers said.

"Critically, investors do not have access to the very basic item of portfolio holdings. Australia and New Zealand are the only countries in our study that do not require portfolio holdings disclosure."

Australia also lacked a proper simplified product disclosure statement, the researchers said.

Morningstar has been lobbying for greater disclosure by fund managers in Australia and the company has sent copies of the report to  Financial Services and Superannuation Minister Bill Shorten and the opposition.

The Financial Services Council said it did not want to respond to the report, but indicated it was uncomfortable with its findings.

Morningstar Australia co-head of research Tim Murphy said the report should not be seen as Morningstar's opinion of the industry, but as an assessment of how investors experienced the use of funds.

"This is not an assessment of the funds management industry, but a survey of investors' experience," Murphy said.

"It is an effort to shine a light on best practice. Australia and New Zealand lag the rest of the world; that can't be debated."

Australia did score well on the average fees and expenses of funds.

"This is not surprising, the focus industry funds put on that, and the inflows into index funds," Murphy said.

The United States, Singapore and Thailand rated best in the experience of investors.