In its annual rating of Australia's 15 unclaimed super funds, research house the Heron Partnership could only award one, AUSfund, the top score of five stars.
"Our research has revealed that there is a wide gap between the overall quality of AUSfund and the other ERFs in the market," The Heron Partnership managing director Chris Butler said.
The study found multiple problems with the other ERFs, such as excessive fees and unclear fee structures.
It also identified a lack of clear investment objectives and reporting criteria and the use of external investment advisers. It was also critical of outdated Product Disclosure Statements (PDS) on websites.
Butler said while the average account balance in an ERF is low, at around $1100, most funds are charging the consumer between 1.4 per cent and 8 per cent of their assets in annual fees, in contrast to the average 2 per cent fees that retail super funds charge.
"The [ERFs] are quite happy to get the fees and we think they're excessive," he said.
Only nine out of the 15 had websites, and only five of these had links to the Australian Taxation Office's Superseeker website.
"It should be easy for people to access their ERF," Butler said.
"Not enough effort is being put into making it easy for the members."
Around one-third of Australia's workforce has money tied up in lost super funds with total assets estimated at $5.4 billion.
"[ERFs] are becoming an important part of the marketplace because the average assets that people have in ERFs is increasing and more people are going into them," Butler said.
The corporate regulator has commenced proceedings in the Federal Court against NAB for breaches of the law related to the bank’s loan “...
The Sydney-based fund manager has entered a trading halt as it looks to raise $275 million to fund new growth opportunities. ...
Almost half or 48 per cent of investment professionals expect their role to be significantly different or non-existent within the next five ...