ANZ/OnePath worst performer again

ANZ/OnePath has again topped the list of worst-performing super funds, according to Stockspot's Fat Cat Funds Report for 2019.

Joining them at the top this year however is AMP, which now also owns 11 fat cat funds, up from three last year.

Taking out second place is Perpetual with four fat cat funds, MLC and Zurich came in joint third with three each.

In its annual report, robo-advice service Stockspot analysed 600 of the largest superannuation funds in Australia to find the best and the worst super funds.

The funds were assessed on how they performed, after fees, compared to other super options of similar risk over five years.

ANZ/OnePath has owned the most 'fat cat' funds since Stockspot released its first Fat Cat report in 2013. They control 11 of the worst 40 funds, up from 10 last year.

Joining them at the top this year however is AMP, which now also owns 11 fat cat funds, up from three last year.

Collectively, the fat cats manage $7 billion worth of funds, and cost Australians $150 million a year in fees.

Those who keep their super in these funds face an average of 2.07% in fees annually, compared to the 0.93% in the average 'fit cat' fund or best-performing funds, Stockspot said.

Stockspot concluded poor fund performance comes mostly from high fees, with funds finding it harder to generate strong enough returns to offset the impact of these high fees.

Despite the top-performing super funds having different investment strategies, a common factor between the funds was their relatively low fees, each coming in at well under 1%.

These funds are QSuper, which took the top 'fit cat' spot, followed by UniSuper and AustralianSuper.

There are significant consequences for members of fat cat funds, with the burden particularly apparent for younger members, who have longer to work before they retire.

According to their data, a super fund member will be about $200,000 better off over their lifetime if they are in a fund charging less than 1%, compared to someone paying 2%.

Read more: StockspotFat Cat Funds ReportAustralianSuperMLCUniSuperZurich
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