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24th Heron Quality Star Ratings Released

Released: 12 February, 2018

2018 Calendar Year Assessment

Leading independent superannuation and actuarial consultancy, The Heron Partnership, has released its latest half-yearly assessment of superannuation funds for calendar year 2018.

Originally launched in 2006, the 2018 calendar year ratings are the 24th public assessment undertaken by Heron. These ratings covered 136 superannuation products, which included 55 commercial products, 48 industry funds, 11 Government designated funds, 22 specialist "corporate" products and 79 pension products.

The products that achieved the highest numeric rating in each product classification receive Heron's Top Rated Product award for that classification and are awarded 6 Stars.

The Heron Partnership's Managing Director, Chris Butler, said, "We are delighted to announce that Sunsuper for life, AMP SignatureSuper and AMP SignatureSuper Allocated Pension have again achieved the highest numeric rating for their respective product category in our 2018 assessment and therefore receive the Top Rated Product awards. These 3 products also received their respective Top Rated Product award in the 2017 ratings."

Heron's Top Rated Superannuation Products for 2018

Top Rated Personal Product Sunsuper for life
Top Rated Corporate Product AMP SignatureSuper
Top Rated Pension Product AMP SignatureSuper Allocated Pension

The 95 superannuation products rated as "outstanding quality" and therefore awarded 5 Heron Quality Stars are (in alphabetical order) as follows.

Outstanding Superannuation Products

AMG Super - Corporate Super Kinetic Super
AMG Super - Personal Super legalsuper
AMP - Flexible Super LGIAsuper
AMP - Flexible Super - Employer Local Government Super
AMP CustomSuper LUCRF
AMP MyNorth Macquarie Wrap - Super Accumulator
AMP SignatureSuper Macquarie Wrap - Super and Pension Consolidator
AMP SignatureSuper Select Macquarie Wrap - Super and Pension Manager
AMP Summit - Personal Super Mentor Superannuation Master Trust
ANZ Smart Choice Super (Employer Sponsored) Mercer SmartSuper Plan - Employer Section
ANZ Smart Choice Super and Pension Mercer Super Trust - Corporate Superannuation Division
Asgard Elements Super MLC MasterKey Business Super
Asgard Employee Super MLC MasterKey Super Fundamentals
Asgard eWRAP Super MLC Navigator Retirement Plan Series 2
Asgard Infinity eWRAP Super MTAA Super
AustralianSuper Plan netwealth Super Accelerator Core - Employer Sponsored Super
AustralianSuper Personal Plan netwealth Super Accelerator Plus
AustralianSuper Public Sector Division netwealth Super Accelerator Plus - Employer Sponsored Super
AustralianSuper Select netwealth Super Wrap - Employer Sponsored Super
AustSafe Super NGS Super
BT Business Super OnePath OneAnswer Frontier Personal Super
BT Lifetime Super - Employer Plan Perpetual Select Super Plan
BT Super for Life Plum Super
BT SuperWrap Essentials Personal Super Plan Plum Super - Personal Division
BT SuperWrap Personal Super Plan Prime Super (Health Division)
CareSuper Employee Plan Prime Super (Prime Division)
CareSuper Personal Plan REI Super
Child Care Super REST Corporate
Club Plus REST Super
Club Super Russell Investments Master Trust - iQ Super - Employer
Colonial First State FirstChoice Employer Super Russell Investments Master Trust - iQ Super - General
Colonial First State FirstChoice Wholesale Personal Super Russell Investments Master Trust - iQ Super - Saver
EISS smartMonday DIRECT
Equip MyFuture smartMonday PRIME
Equip MyFuture - Corporate StatewideSuper
First State Super Strategy Retirement Fund
Freedom of Choice Employer Superannuation Service Suncorp Brighter Super for Business
Freedom of Choice Personal Superannuation Service Suncorp Brighter Super Personal Super
GuildSuper Sunsuper for life
HESTA Sunsuper for life Business
Hostplus Sunsuper for life Corporate
Hostplus Executive Tasplan
Hostplus Personal Super Plan Telstra Super - Personal Plus
Intrust Super The Executive Superannuation Fund (Employer Sponsored)
IOOF Employer Super The Executive Superannuation Fund (Personal)
IOOF Employer Super - Personal Division UniSuper Accumulation Super (1)
IOOF Pursuit Focus Personal Superannuation VicSuper FutureSaver
IOOF Pursuit Select Personal Superannuation  

MySuper Investment Option

Heron has again undertaken an assessment of each products MySuper investment option. For their MySuper rating Heron considers the type of option (LifeStages or Single Diversified), the reliability of the historical return history, the TAA range, the level and type of active/passive management, actual or indicative historical investment performance, ease of understanding and fee based on the PDS disclosure. In addition, in assessing the LifeStages options Heron considered whether the structure included cohorts, the cohort age band period and the cohort curve shape.

Based on this assessment criteria, Heron awarded 5 Stars to the following 54 products.

Outstanding MySuper Option

AMG Super - Corporate Super LGIAsuper
AMP - Flexible Super LUCRF
AMP - Flexible Super - Employer Meat Industry Employees’ Superannuation Fund
ANZ Smart Choice Super (Employer Sponsored) Media Super - Employer Sponsored Account
AustralianSuper Plan Media Super - Personal Account
AustralianSuper Personal Plan Mine Wealth + Wellbeing Super
AustralianSuper Public Sector Division MLC MasterKey Business Super
Bendigo SmartStart Super MTAA Super
BUSSQ MySuper NGS Super
CareSuper Employee Plan Prime Super (Health Division)
Catholic Super Prime Super (Prime Division)
Cbus REI Super
Club Plus REST Corporate
Colonial First State FirstChoice Employer Super REST Super
EISS Russell Investments Master Trust - iQ Super - Employer
Equip MyFuture Russell Investments Master Trust - iQ Super - General
Equip MyFuture - Corporate Russell Investments Master Trust - iQ Super - Saver
First State Super smartMonday PRIME
HESTA StatewideSuper
Hostplus Sunsuper for life
Hostplus Executive Sunsuper for life Business
Hostplus Personal Super Plan Sunsuper for life Corporate
Intrust Super Tasplan
IOOF Employer Super Telstra Super - Personal Plus
IOOF Employer Super - Personal Division UniSuper Accumulation Super (1)
Kinetic Super VicSuper FutureSaver
legalsuper WA Super

The assessment of personal and corporate superannuation products undertaken by Heron covers about 120 key product features that are grouped under 5 Areas of Importance of Investment Arrangements, Insurance, Contributions, Ancillary Benefits, and Communications. Investments and Insurance have the greatest impact on a product's rating with weightings of 55% and 30% respectively.

Based on Heron's numeric rating the following products have been designated as Top Ten Products for Investment Features and as Top Ten Products for Insurance Features.

In alphabetical order the Top 10 Personal and Corporate Products in respect to Investment Features are:

Top 10 Investment Features

Personal Corporate
Asgard eWRAP & Infinity eWRAP Super AMP Flexible Super - Employer
AustralianSuper AMP CustomSuper
Hostplus AMP SignatureSuper & Select
IOOF Employer Super - Personal Division Asgard Employee Super
IOOF Pursuit Select Personal Superannuation Colonial First State FirstChoice Employer Super
Macquarie Wrap IOOF Employer Super
Mercer SmartSuper Plan - Individual Section Mercer Super Trust & SmartSuper
MLC Navigator Retirement Plan Series 2 Plum Super
OnePath OneAnswer Frontier Personal Super smartMonday PRIME
Sunsuper for life Sunsuper for life

In alphabetical order the Top 10 Personal and Corporate Products in respect to Insurance Features are:

Top 10 Insurance Features

Personal Corporate
ANZ Smart Choice Super and Pension AMP SignatureSuper
Asgard Elements Super ANZ Smart Choice Super (Employer Sponsored)
Asgard eWRAP & Infinity eWRAP Super Asgard Employee Super
Mentor Superannuation Master Trust BT Business Super
netwealth Super Accelerator Core - Employer Sponsored Super BT Lifetime Super - Employer Plan
netwealth Super Accelerator Plus - Employer Sponsored Super Mercer Super Trust - Corporate Superannuation Division
Perpetual MySuper MLC MasterKey Business Super
Perpetual Select Super Plan Plum Super
Telstra Super - Personal Plus Russell Investments Master Trust - iQ Super - Employer
VicSuper FutureSaver smartMonday PRIME

The Pension products rated as "outstanding quality" and therefore awarded 5 Heron Quality Stars are (in alphabetical order), as follows.

Outstanding Pension Products

AMP Flexible Lifetime Allocated Pension Plan IOOF Pursuit Select Allocated Pension
AMP Signature Super Allocated Pension legalsuper Pension
Summit Personal Pension Media Super Pension
Asgard Elements Pension MLC MasterKey Pension Fundamentals
Asgard eWRAP Pension MLC Wrap Super - Pension Service
Asgard Infinity eWRAP Pension MLC Navigator Retirement Plan Series 2 - Pension Service
AustralianSuper Choice Income MLC MasterKey Pension
BT SuperWrap Pension Plan netwealth Standard Income Stream
BUSSQ Pension NGS Super Account Based Pension
CareSuper Pension OnePath OneAnswer Frontier Pension
Colonial First State - FirstChoice Pension Prime Super Allocated & Non Commutable Superannuation Income Streams
Colonial First State - FirstChoice Wholesale Pension REST Pension
EISS Pension Russell iQ Retirement
Equipsuper Account Based Pension smartMonday PENSION
First State Super Income Stream Statewide Pension
HESTA Income Stream Suncorp Brighter Super - Pension
Hostplus Pension Plan Sunsuper for Life - Income Account
Intrust Super Super Stream Pension Unisuper Pension
IOOF Pursuit Focus Allocated Pension Vision Income Streams

The Heron Quality Star Ratings have 5 levels as follows:

Rating Definition
5 Stars Outstanding
4 Stars Commendable
3 Stars Good
2 Stars Poor
1 Star Unacceptable

Details of the Heron Quality Star Ratings, including the assessment methodology and products awarded with 5 Heron Quality Stars, are featured on The Heron Partnership's web site and their Heron Advisor product research and comparison service.

2017/18 Heron Quality Star Ratings Released

Released: 12 July, 2017

2017/18 Calendar Year Assessment

Leading independent superannuation and actuarial consultancy, The Heron Partnership, has released its latest half-yearly assessment of superannuation funds.

The Heron Quality Star Ratings were launched in 2006 and the 2017/18 financial year ratings are the 23rd public assessment undertaken by Heron. These ratings covered 136 superannuation products, which included 59 commercial products, 45 industry funds, 11 Government designated funds, 21 specialist "corporate" products and 81 pension products.

The Heron Partnership's Managing Director, Chris Butler, said, "We are very pleased with the outworking of our ratings and are delighted to congratulate all award winners."

The 90 superannuation products rated as "outstanding quality" and therefore awarded 5 Heron Quality Stars are (in alphabetical order) as follows.

Outstanding Superannuation Products

AMG Super - Corporate Super legalsuper
AMG Super - Personal Super LGIAsuper
AMP CustomSuper Local Government Super
AMP Flexible Super LUCRF
AMP Flexible Super - Employer Macquarie Wrap - Super Accumulator
AMP MyNorth Macquarie Wrap - Super and Pension Consolidator
AMP SignatureSuper Macquarie Wrap - Super and Pension Manager
AMP SignatureSuper Select Mentor Superannuation Master Trust
AMP Summit - Personal Super Mercer SmartSuper Plan - Employer Section
ANZ Smart Choice Super (Employer Sponsored) Mercer Super Trust - Corporate Superannuation Division
ANZ Smart Choice Super and Pension MLC MasterKey Business Super
Aon Master Trust - Corporate Super - Essentials MLC MasterKey Super Fundamentals
Aon Master Trust - Personal Super - Essentials MLC Navigator Retirement Plan Series 2
Asgard Elements Super MLC Wrap Super - Super Service Series 2
Asgard Employee Super Nationwide Superannuation Fund
Asgard eWRAP Super netwealth Super Accelerator Core - Employer Sponsored Super
Asgard Infinity eWRAP Super netwealth Super Accelerator Plus
AustralianSuper netwealth Super Accelerator Plus - Personal Super
AustSafe Super netwealth Super Accelerator Plus - Employer Sponsored Super
BT Business Super netwealth Super Wrap - Employer Sponsored Super
BT Lifetime Super - Employer Plan NGS Super
BT Super for Life OnePath OneAnswer Frontier Personal Super
BT SuperWrap Essentials Personal Super Plan Perpetual Select Superannuation Plan
BT SuperWrap Personal Super Plan Plum Super
BUSSQ Premium Choice Plum Super - Personal Division
CareSuper - Employee Plan Prime Super
CareSuper - Personal Plan QSuper
Club Super REI Super
Colonial First State FirstChoice Employer Super REST Corporate
Colonial First State FirstChoice Wholesale Personal Super REST Super
EISS Super Russell Investments Master Trust - iQ Super - Saver
Equip MyFuture Russell Investments Master Trust - iQ Super - Employer
Equip MyFuture - Corporate Russell Investments Master Trust - iQ Super - General
First State Super StatewideSuper
Freedom of Choice - Employer Superannuation Service Strategy Retirement Fund
Freedom of Choice - Personal Superannuation Service Suncorp Brighter Super for Business
GuildSuper Suncorp Brighter Super Personal Super
HESTA Sunsuper for life
Hostplus Sunsuper for life Business
Intrust Super Sunsuper for life Corporate
IOOF Employer Super Tasplan
IOOF Employer Super - Personal Division Telstra Super - Personal Plus
IOOF Pursuit Focus The Executive Superannuation Fund (Employer Sponsored)
IOOF Pursuit Select Personal Superannuation Unisuper Accumulation 1
Kinetic Super VicSuper FutureSaver

MySuper Investment Option

Heron has again undertaken an assessment of each products MySuper investment option. For their MySuper rating Heron considers the type of option (LifeStages or Single Diversified), the reliability of the historical return history, the TAA range, the level and type of active/passive management, actual or indicative historical investment performance, ease of understanding and fee based on the PDS disclosure. In addition, in assessing the LifeStages options Heron considered whether the structure included cohorts, the cohort age band period and the cohort curve shape.

Based on this assessment criteria, Heron awarded 5 Stars to the following 41 products.

Outstanding MySuper Option

AMG Super - Corporate Super Local Government Super
AMP Flexible Super LUCRF
ANZ Smart Choice Super (Employer Sponsored) Meat Industry Employees’ Superannuation Fund
AustralianSuper Media Super - Employer Sponsored Account
AustSafe Super MLC MasterKey Business Super
Bendigo SmartStart Super MTAA Super
BUSSQ MySuper Plum Super
CareSuper - Personal Plan Prime Super
Cbus QSuper
Colonial First State FirstChoice Employer Super REI Super
EISS Super REST Super
Equip MyFuture Russell Investments Master Trust - iQ Super - Employer
First State Super Suncorp Brighter Super for Business
GuildSuper Sunsuper for life Corporate
HESTA Tasplan
Hostplus Telstra Super - Personal Plus
Intrust Super The Executive Superannuation Fund (Employer Sponsored)
IOOF Employer Super TWUSUPER
Kinetic Super Unisuper Accumulation 1
legalsuper Vision Super Personal Plan
LGIAsuper  

The assessment of personal and corporate superannuation products undertaken by Heron covers about 120 key product features that are grouped under 5 Areas of Importance of Investment Arrangements, Insurance, Contributions, Ancillary Benefits, and Communications. Investments and Insurance have the greatest impact on a product's rating with weightings of 55% and 30% respectively.

Based on Heron's numeric rating the following products have been designated as Top Ten Products for Investment Features and as Top Ten Products for Insurance Features.

In alphabetical order the Top 10 Personal and Corporate Products in respect to Investment Features are:

Top 10 Investment Features

Personal Corporate
AMP - Flexible Super AMP CustomSuper
AustralianSuper AMP Flexible Super - Employer
Hostplus AMP SignatureSuper
IOOF Employer Super - Personal Division AMP SignatureSuper Select
Macquarie Wrap - Super and Pension Manager IOOF Employer Super
Macquarie Wrap - Super and Pension Consolidator Mercer SmartSuper Plan - Employer Section
Mercer SmartSuper Plan - Individual Section Mercer Super Trust - Corporate Superannuation Division
MLC Navigator Retirement Plan Series 2 Plum Super
MLC Wrap Super - Super Service Series 2 Sunsuper for life Business
Sunsuper for life Sunsuper for life Corporate

In alphabetical order the Top 10 Personal and Corporate Products in respect to Insurance Features are:

Top 10 Insurance Features

Personal Corporate
Asgard Elements Super ANZ Smart Choice Super (Employer Sponsored)
Asgard Infinity eWRAP Super Aon Master Trust - Corporate Super - Essentials
Mentor Superannuation Master Trust Asgard Employee Super
Nationwide Superannuation Fund BT Business Super
netwealth Super Accelerator Core - Employer Sponsored Super BT Lifetime Super - Employer Plan
netwealth Super Accelerator Plus - Employer Sponsored Super IOOF Employer Super
Perpetual MySuper Mercer Super Trust - Corporate Superannuation Division
Perpetual Select Superannuation Plan MLC MasterKey Business Super
Telstra Super - Personal Plus Plum Super
VicSuper Future Saver Russell Investments Master Trust - iQ Super - Employer

The Pension products rated as "outstanding quality" and therefore awarded 5 Heron Quality Stars are (in alphabetical order), as follows.

Outstanding Pension Products

AMP Signature Super Allocated Pension IOOF Pursuit Focus Allocated Pension
AMP Summit Personal Pension IOOF Pursuit Select Allocated Pension
Aon Master Trust Pension - Essentials legalsuper Pension
Asgard Elements Pension MLC MasterKey Pension
Asgard eWRAP Pension MLC MasterKey Pension Fundamentals
Asgard Infinity eWRAP Pension MLC Navigator Retirement Plan Series 2 - Pension Service
AustralianSuper Choice Income MLC Wrap Super - Pension Service
BT SuperWrap Pension Plan netwealth Standard Income Stream
BUSSQ Pension NGS Super Account Based Pension
CareSuper Pension OnePath OneAnswer Frontier Pension
Colonial First State - FirstChoice Pension REST Pension
Colonial First State - FirstChoice Wholesale Pension Russell iQ Retirement
EISS Pension Statewide Pension
Equipsuper Account Based Pension Suncorp Brighter Super - Pension
First State Super Income Stream Sunsuper for life - Income Account
HESTA Income Stream Unisuper Pension
Hostplus Pension Plan Vision Income Streams
Intrust Super - Super Stream Pension  

The Heron Quality Star Ratings have 5 levels as follows:

Rating Definition
5 Stars Outstanding
4 Stars Commendable
3 Stars Good
2 Stars Poor
1 Star Unacceptable

Details of the Heron Quality Star Ratings, including the assessment methodology and products awarded with 5 Heron Quality Stars, are featured on The Heron Partnership's web site and their Heron Advisor product research and comparison service.

22nd Heron Quality Star Ratings Released

Released: 1 February, 2017

2017 Calendar Year Assessment

Leading independent superannuation and actuarial consultancy, The Heron Partnership, has released its latest half-yearly assessment of superannuation funds.

The Heron Quality Star Ratings were launched in 2006 and the 2017 financial year ratings are the 22nd public assessment undertaken by Heron. These ratings covered 141 superannuation products, which included 62 commercial products, 53 industry funds, 6 Government designated funds, 21 specialist "corporate" products and 80 pension products.

Based on Heron's numeric rating system, the products in each product classification that achieved the highest score, receive Heron's Top Rated Product award for that classification and are awarded 6 Stars.

The Heron Partnership's Managing Director, Chris Butler, said, "We are very pleased to announce that Sunsuper for life, AMP SignatureSuper and AMP SignatureSuper Allocated Pension have achieved the highest numeric rating for their respective product category in our 2017 assessment and therefore receive the Top Rated Product awards. Although AMP SignatureSuper has been designated as a 5 Star product since we commenced public ratings in 2006 it is the first occasion that it has received the Top Rated Corporate Product award. Sunsuper for life received this award for the 2016/17 financial year ratings. AMP SignatureSuper Allocated Pension has received the highest score for Pension products previously and consecutively since the 2015/16 ratings."

Heron's Top Rated Superannuation Products for 2017

Top Rated Personal Product Sunsuper for life
Top Rated Corporate Product AMP SignatureSuper
Top Rated Pension Product AMP SignatureSuper Allocated Pension

The 94 superannuation products rated as "outstanding quality" and therefore awarded 5 Heron Quality Stars are (in alphabetical order) as follows.

Outstanding Superannuation Products

AMG Super - Corporate Super LUCRF
AMG Super - Personal Super Macquarie Wrap - Super Accumulator
AMP - Flexible Super Macquarie Wrap - Super and Pension Consolidator
AMP CustomSuper Macquarie Wrap - Super and Pension Manager
AMP SignatureSuper Media Super - Employer Sponsored Account
AMP SignatureSuper Select Mentor Superannuation Master Trust
ANZ Smart Choice Super (Employer Sponsored) Mercer SmartSuper - Employer Section
ANZ Smart Choice Super and Pension Mercer SmartSuper - Individual Section
Aon Master Trust - Corporate Super - Essentials Mercer Super Trust
Aon Master Trust - Personal Super Essentials MLC MasterKey Business Super
Asgard Elements Super MLC MasterKey Super Fundamentals
Asgard Employee Super MLC Navigator Retirement Plan Series 2
Asgard eWRAP Super MLC Wrap Super - Super Service Series 2
Asgard Infinity eWRAP Super Nationwide Superannuation Fund
AustralianSuper netwealth Super Accelerator Core - Employer Sponsored Super
AustSafe Super netwealth Super Accelerator Plus
BT Business Super netwealth Super Accelerator Plus - Personal Super
BT Lifetime Super - Employer Plan netwealth Super Accelerator Plus - Employer Sponsored Super
BT SuperWrap Essentials Personal Super Plan netwealth Super Wrap - Employer Sponsored Super
BT SuperWrap Personal Super Plan NGS Super
BUSSQ Premium Choice OnePath OneAnswer Frontier Personal Super
CareSuper - Employee Plan Perpetual Select Superannuation Plan
CareSuper - Personal Plan Plum Super
Catholic Superannuation Fund Plum Super - Personal Division
Club Super Prime Super
Colonial First State FirstChoice Employer Super QSuper
Colonial First State FirstChoice Wholesale Personal Super REI Super
EISS Super REST Corporate
Equip MyFuture REST Select
Equip MyFuture - Corporate REST Super
First State Super Russell Investments Master Trust - iQ Super - Saver
Freedom of Choice - Employer Superannuation Service Russell Investments Master Trust - iQ Super - Employer
Freedom of Choice - Personal Superannuation Service Russell Investments Master Trust - iQ Super - General
GuildSuper StatewideSuper
HESTA Strategy Retirement Fund
Hostplus Summit - Personal Super
Intrust Super Suncorp Brighter Super for Business
IOOF Employer Super Suncorp Brighter Super Personal
IOOF Employer Super - Personal Division Sunsuper for life
IOOF Portfolio Service Personal Superannuation Sunsuper for life Business
IOOF Pursuit Core Personal Superannuation Sunsuper for life Corporate
IOOF Pursuit Focus Tasplan
IOOF Pursuit Select Personal Superannuation Telstra Super - Personal Plus
Kinetic Super The Executive Superannuation Fund (Employer Sponsored)
legalsuper The Executive Superannuation Fund (Personal)
LGIAsuper Unisuper Accumulation 1
Local Government Super VicSuper FutureSaver

MySuper Investment Option

Heron has also undertaken a detailed review of each products MySuper investment option. For their MySuper rating Heron has taken into account the type of option (LifeStages or Single Diversified), the reliability of the historical return history, the potential member confusion and degree of difficulty to transfer the ADAs, the TAA range, the level and type of active/passive management, actual or indicative historical investment performance, ease of understanding and fee based on the PDS disclosure. In addition, in assessing the LifeStages options Heron considered whether the structure included cohorts, the cohort age band period and the cohort curve shape.

Based on this assessment criteria, Heron awarded 5 Stars to the following 51 products.

Outstanding MySuper Option

AMG Super - Corporate Super LUCRF
AMP - Flexible Super Media Super - Employer Sponsored Account
ANZ Smart Choice Super (Employer Sponsored) Media Super - Personal Account
AustralianSuper MLC MasterKey Business Super
AustSafe Super MTAA Super
Bendigo SmartStart Super NGS Super
CareSuper - Employee Plan Plum Super
Cbus Prime Super
Club Plus Super QSuper
Colonial First State FirstChoice Employer Super REI Super
EISS Super REST Super
Equip MyFuture Russell Investments Master Trust - iQ Super - Saver
Equip MyFuture - Corporate Russell Investments Master Trust - iQ Super - Employer
First State Super Russell Investments Master Trust - iQ Super - General
Freedom of Choice - Employer Superannuation Service Suncorp Brighter Super for Business
Freedom of Choice - Personal Superannuation Service Sunsuper for life
GuildSuper Sunsuper for life Business
HESTA Sunsuper for life Corporate
Hostplus Tasplan
Intrust Super Telstra Super - Personal Plus
IOOF Employer Super The Executive Superannuation Fund (Employer Sponsored)
IOOF Employer Super - Personal Division The Executive Superannuation Fund (Personal)
Kinetic Super TWUSUPER
legalsuper Unisuper Accumulation 1
LGIAsuper VicSuper FutureSaver
Local Government Super  

The assessment of personal and corporate superannuation products undertaken by Heron covers about 120 key product features that are grouped under 5 Areas of Importance of Investment Arrangements, Insurance, Contributions, Ancillary Benefits, and Communications. Investments and Insurance have the greatest impact on a product's rating with weightings of 55% and 30% respectively. Based on Heron's numeric rating the following products have been designated as Top Ten Products for Investment Features and as Top Ten Products for Insurance Features.

In alphabetical order the Top 10 Personal and Corporate Products in respect to Investment Features are:

Top 10 Investment Features

Personal Corporate
Asgard eWRAP Super AMP CustomSuper
Asgard Infinity eWRAP Super AMP SignatureSuper
IOOF Employer Super - Personal Division AMP SignatureSuper Select
IOOF Portfolio Service Personal Superannuation Colonial First State FirstChoice Employer Super
IOOF Pursuit Core Personal Superannuation IOOF Employer Super
Macquarie Wrap - Super and Pension Consolidator Mercer Super Trust
Mercer SmartSuper - Individual Section MLC MasterKey Business Super
MLC Navigator Retirement Plan Series 2 Plum Super
MLC Wrap Super - Super Service Series 2 Sunsuper for life Business
Sunsuper for life Sunsuper for life Corporate

In alphabetical order the Top 10 Personal and Corporate Products in respect to Insurance Features are:

Top 10 Insurance Features

Personal Corporate
Asgard Elements Super AMP SignatureSuper
Asgard eWRAP Super ANZ Smart Choice Super (Employer Sponsored)
Asgard Infinity eWRAP Super Aon Master Trust - Corporate Super - Essentials
Mentor Superannuation Master Trust Asgard Employee Super
Nationwide Superannuation Fund BT Lifetime Super - Employer Plan
netwealth Super Accelerator Core - Employer Sponsored Super IOOF Employer Super
netwealth Super Accelerator Plus - Employer Sponsored Super Mercer Super Trust
netwealth Super Wrap - Employer Sponsored Super MLC MasterKey Business Super
Perpetual MySuper Plum Super
Perpetual Select Superannuation Plan Russell Investments Master Trust - iQ Super - Employer

The Pension products rated as "outstanding quality" and therefore awarded 5 Heron Quality Stars are (in alphabetical order), as follows.

Outstanding Pension Products

AMP Signature Super Allocated Pension IOOF Pursuit Focus Allocated Pension
Aon Master Trust Pension - Essentials IOOF Pursuit Select Allocated Pension
Asgard Elements Pension legalsuper Pension
Asgard eWRAP Pension MLC MasterKey Pension
Asgard Infinity eWRAP Pension MLC MasterKey Pension Fundamentals
AustralianSuper Choice Income MLC Navigator Retirement Plan Series 2 - Pension Service
BT SuperWrap Pension Plan MLC Wrap Super - Pension Service
BUSSQ Pension netwealth Standard Income Stream
CareSuper Pension NGS Super Account Based Pension
Colonial First State - FirstChoice Pension OnePath OneAnswer Frontier Pension
Colonial First State - FirstChoice Wholesale Pension REST Pension
EISS Pension Russell iQ Retirement
Equip Account Based Pension Statewide Pension
First State Super Income Stream Suncorp Brighter Super - Pension
HESTA Income Stream Sunsuper for life - Income Account
Hostplus Pension Plan Unisuper Pension
Intrust Super - Super Stream Vision Income Streams

The Heron Quality Star Ratings have 5 levels as follows:

Rating Definition
5 Stars Outstanding
4 Stars Commendable
3 Stars Good
2 Stars Poor
1 Star Unacceptable

Details of the Heron Quality Star Ratings, including the assessment methodology and products awarded with 5 Heron Quality Stars, are featured on The Heron Partnership's web site and their Heron Advisor product research and comparison service.

21st Heron Quality Star Ratings Released

Released: 1 August, 2016

2016/17 Calendar Year Assessment

Leading independent superannuation and actuarial consultancy, The Heron Partnership, has released its latest half-yearly assessment of superannuation funds.

The Heron Quality Star Ratings were launched in 2006 and the 2016/17 financial year ratings are the 21st public assessment undertaken by Heron. These ratings covered 143 superannuation products, which included 62 commercial products, 53 industry funds, 6 Government designated funds, 22 specialist “corporate” products and 81 pension products.

Based on Heron’s numeric rating system, the products in each product classification that achieved the highest score, receive Heron’s Top Rated Product award for that classification and are awarded 6 Stars.

The Heron Partnership’s Managing Director, Chris Butler, said, “It is with pleasure that we announce that Sunsuper for life, Plum Superannuation Fund and AMP SignatureSuper Allocated Pension have achieved the highest numeric rating for their respective product category in our 2016/17 assessment and therefore receive the Top Rated Product awards. Although Plum Superannuation Fund and AMP SignatureSuper Allocated Pension have received Top Rated Product status before, this is the first occasion that Sunsuper for life has received this award”.

Heron's Top Rated Superannuation Products for 2016/17

Top Rated Personal Product Sunsuper for life
Top Rated Corporate Product Plum Superannuation Fund
Top Rated Pension Product AMP SignatureSuper Allocated Pension

The 92 superannuation products rated as “outstanding quality” and therefore awarded 5 Heron Quality Stars are (in alphabetical order) as follows.

Outstanding Superannuation Products

AMG Super - Corporate Super Local Government Super
AMG Super - Personal Super LUCRF
AMP CustomSuper Macquarie Wrap - Super Accumulator
AMP Flexible Super Macquarie Wrap - Super & Pension Consolidator
AMP Flexible Super - Employer Macquarie Wrap - Super & Pension Manager
AMP SignatureSuper Media Super
AMP SignatureSuper Select Mentor Superannuation Master Trust
ANZ Smart Choice Super (Employer Sponsored) Mercer SmartSuper
ANZ Smart Choice Super and Pension Mercer SuperTrust
Aon Master Trust - Corporate Super Essentials MLC MasterKey Business Super
Aon Master Trust - Personal Super Essentials MLC MasterKey Super Fundamentals
Apex Super Fund MLC Navigator Retirement Plan Series 2
Asgard Elements Super MLC Wrap Super - Superannuation Service Series 2
Asgard Employee Super Nationwide Superannuation Fund
Asgard eWRAP Super netwealth Super Accelerator Core - Employer Sponsored Super
Asgard Infinity eWRAP Super netwealth Super Accelerator Plus - Employer Sponsored Super
AustralianSuper netwealth Super Wrap - Employer Sponsored Super
AustSafe NGS Super
Bendigo SmartOptions Super OnePath OneAnswer Frontier Personal Super
BT Business Super Perpetual Select Superannuation Plan
BT Lifetime Super - Employer Plan Plum Superannuation Fund
BT Super for Life Plum Superannuation Fund - Personal Division
BT SuperWrap Essentials Personal Super Plan Prime Super
BT SuperWrap Personal Super Plan Pursuit Core Personal Superannuation
BUSS(Q) Premium Choice Pursuit Select Personal Superannuation
CareSuper Qsuper
Catholic Superannuation Fund REI Super Elite
CareSuper REST Corporate
Club Super REST Select
Colonial First State FirstChoice Employer Super REST Super
EISS Super Russell SuperSolution Master Trust - Employer Division
Equip MyFuture Russell SuperSolution Master Trust - General Division
Equity Super Freedom of Choice - Employer Super Russell SuperSolution Master Trust - Russell IQ
Equity Super Freedom of Choice - Personal Super StatewideSuper
First State Super Strategy Retirement Fund
GuildSuper Summit Personal Super
HESTA Sunsuper for life
HOSTPLUS Sunsuper for life Business
Intrust Super Sunsuper for life Corporate
IOOF Employer Super Tasplan
IOOF Employer Super - Personal Division Telstra Super - Personal Plus
IOOF Portfolio Service Personal Superannuation The Executive Superannuation Fund (Employer Sponsored)
IOOF Pursuit Focus The Executive Superannuation Fund (Personal)
Kinetic Super Unisuper Accumulation Super (1)
Legalsuper VicSuper FutureSaver
LGIAsuper WA Super

MySuper Investment Option

Heron has also undertaken a detailed review of each products MySuper investment option. For their MySuper rating Heron has taken into account the type of option (LifeStages or Single Diversified), the reliability of the historical return history, the potential member confusion and degree of difficulty to transfer the ADAs, the TAA range, the level and type of active/passive management, actual or indicative historical investment performance, ease of understanding and fee based on the PDS disclosure. In addition, in assessing the LifeStages options Heron considered whether the structure included cohorts, the cohort age band period and the cohort curve shape.

Based on this assessment criteria, Heron awarded 5 Stars to the following 48 products.

Outstanding MySuper Option

AMG Super - Corporate Super Kinetic Super
AMP - Flexible Super Legalsuper
ANZ Smart Choice Super (Employer Sponsored) LGIASuper
Australian Meat Industry Superannuation Trust Local Government Super
AustralianSuper LUCRF
AustSafe Meat Industry Employees' Superannuation Fund
AvSuper Media Super
Bendigo SmartStart Super MLC MasterKey Business Super
BUSS (Q) MySuper MTAA
Cbus NGS Super
Christian Super Plum Superannuation Fund
Club Plus QSuper - Accumulation Account
Club Super REI Super
EISS Super REST Super
EquitySuper Freedom of Choice - Business Super Sunsuper for life
EquitySuper Freedom of Choice - Personal Super Sunsuper for life Business
First State Super Sunsuper for life Corporate
First Super Tasplan
GuildSuper Telstra Super
HESTA The Executive Superannuation Fund
Hostplus TWUSUPER
Intrust Super Unisuper
IOOF Employer Super VicSuper FutureSaver
IOOF Employer Super - Personal Division WA Super

In alphabetical order, the following products have been judged as Top 10 MySuper:

AustralianSuper
AustSafe
EISS Super
First State Super
LGIAsuper
Qsuper
REI Super
REST Super
Sunsuper for life
Unisuper

The assessment of personal and corporate superannuation products undertaken by Heron covers about 120 key product features that are grouped under 5 Areas of Importance of Investment Arrangements, Insurance, Contributions, Ancillary Benefits, and Communications. Investments and Insurance have the greatest impact on a product's rating with weightings of 55% and 30% respectively. Based on Heron's numeric rating the following products have been designated as Top Ten Products for Investment Features and as Top Ten Products for Insurance Features.

In alphabetical order the Top 10 Personal and Corporate Products in respect to Investment Features are:

Top 10 Investment Features

Personal Corporate
Asgard eWRAP Super AMP CustomSuper
Asgard Infinity eWRAP AMP SignatureSuper
Colonial First State FirstChoice Wholesale Personal Super AMP SignatureSuper Select
IOOF Employer Super – Personal Division Colonial First State FirstChoice Employer Super
IOOF Portfolio Service Personal Superannuation IOOF Employer Super
IOOF Pursuit Core Personal Superannuation Mercer SuperTrust
Macquarie Super and Pension Manager MLC MasterKey Business Super
Mercer SmartSuper - Individual Section Plum Superannuation Fund
MLC Navigator Retirement Plan Series 2 Sunsuper for life Business
MLC Wrap Super - Super Service Series Sunsuper for life Corporate

In alphabetical order the Top 10 Personal and Corporate Products in respect to Insurance Features are:

Top 10 Insurance Features

Personal Corporate
Asgard Elements Super AMP SignatureSuper
Asgard eWRAP Super ANZ Smart Choice Super (Employer Sponsored)
Asgard Infinity eWRAP Super Aon Master Trust - Corporate Super - Essentials
Mentor Superannuation Master Trust Asgard Employee Super
Nationwide Superannuation Fund BT Business Super
netwealth Super Accelerator Core - Employer Sponsored Super BT Lifetime Super - Employer Plan
netwealth Super Accelerator Plus - Employer Sponsored Super IOOF Employer Super
netwealth Super Wrap - Employer Sponsored Super Mercer SuperTrust
Perpetual MySuper MLC MasterKey Business Super
Perpetual Select Superannuation Plan Plum Superannuation Fund

The Pension products rated as "outstanding quality" and therefore awarded 5 Heron Quality Stars are (in alphabetical order), as follows.

Outstanding Pension Products

Personal Corporate
AMP Signature Super Allocated Pension IOOF Pursuit Focus Allocated Pension
Aon Allocated Pension Plan IOOF Pursuit Select Allocated Pension
Asgard Elements Pension Legalsuper Pension
Asgard eWRAP Pension MLC MasterKey Pension
Asgard Infinity eWRAP Pension MLC MasterKey Pension Fundamentals
AustralianSuper Choice Income MLC Navigator Retirement Plan Series 2
BT SuperWrap Pension Plan MLC Wrap Super - Pension Service
BUSS (Q) Pension netwealth Income Stream
CareSuper Pension NGS Super Account Based Pension
Colonial First State - FirstChoice Pension OnePath OneAnswer Frontier Pension
Colonial First State - FirstChoice Wholesale Pension REST Allocated Pension
Equipsuper Account Based Income Streams Russell Private Active Pension
First State Super Income Stream Statewide Account Based Pension
HESTA Super Income Stream Sunsuper Pension
Hostplus Pension Plan Unisuper Pension
Intrust Super Stream Vision Income Streams Allocated Pension
  IOOF Pursuit Focus Allocated Pension

In alphabetical order, the following products have been judged as Top 10 Pension Products:

AMP Signature Super Allocated Pension Asgard Infinity eWRAP Pension
AustralianSuper Choice Income BT SuperWrap Pension Plan
CareSuper Pension Colonial First State - FirstChoice Pension
Colonial First State - FirstChoice Wholesale Pension IOOF Pursuit Select Allocated Pension
MLC Navigator Retirement Plan Series 2 MLC Wrap Super - Pension Service

The Heron Quality Star Ratings have 5 levels as follows:

Rating Definition
5 Stars Outstanding
4 Stars Commendable
3 Stars Good
2 Stars Poor
1 Star Unacceptable

Details of the Heron Quality Star Ratings, including the assessment methodology and products awarded with 5 Heron Quality Stars, are featured on The Heron Partnership's web site and their Heron Advisor product research and comparison service.

20th Heron Quality Star Ratings Released

Released: 1 February, 2016

2016 Calendar Year Assessment

The Heron Partnership, a leading independent superannuation and actuarial consultancy has released its latest half-yearly assessment of superannuation funds for calendar year 2016.

The Heron Quality Star Ratings were launched in 2006 and the 2016 ratings are the 20th public assessment undertaken by Heron. These ratings covered 149 superannuation products, which included 62 commercial products, 52 industry funds, 8 Government designated funds, 27 specialist "corporate" products and 79 pension products.

The products that achieved the highest numeric rating in each product classification receive Heron's Top Rated Product award for that classification and are awarded 6 Stars.

The Heron Partnership’s Managing Director, Chris Butler, said, "We are delighted to announce that Hostplus, Plum Superannuation Fund and AMP SignatureSuper Allocated Pension have achieved the highest numeric rating for their respective product category in our 2016 assessment and therefore receive the Top Rated Product awards. Although Hostplus and AMP SignatureSuper Allocated Pension have received Top Rated Product status before, this is the first occasion that the Plum Superannuation Fund has received this award".

Heron’s Top Rated Superannuation Products for 2016

Top Rated Personal Product Hostplus
Top Rated Corporate Product Plum Superannuation Fund
Top Rated Pension Product AMP SignatureSuper Allocated Pension

The 97 superannuation products rated as “outstanding quality” and therefore awarded 5 Heron Quality Stars are (in alphabetical order) as follows.

Outstanding Superannuation Products

AMG Super - Corporate Super Local Government Super Accumulation Scheme
AMG Super - Personal Super LUCRF
AMP - Flexible Super Macquarie Wrap - Super Accumulator
AMP - Flexible Super - Employer Macquarie Wrap - Super and Pension Consolidator
AMP CustomSuper Macquarie Wrap - Super and Pension Manager
AMP SignatureSuper Media Super - Employer Sponsored Account
AMP SignatureSuper Select Mentor Superannuation Master Trust
ANZ Smart Choice Super (Employer Sponsored) Mercer SmartSuper - Employer Section
ANZ Smart Choice Super and Pension Mercer SmartSuper - Individual Section
Aon Master Trust - Corporate Super - Essentials Mercer Super Trust
Aon Master Trust - Personal Super Essentials MLC MasterKey Business Super
Apex Super Fund MLC MasterKey Super Fundamentals
Asgard Elements Super MLC Navigator Retirement Plan Series 2
Asgard Employee Super MLC Wrap Super - Super Service Series 2
Asgard eWRAP Super Nationwide Superannuation Fund - NSF Super
Asgard Infinity eWRAP Super netwealth Super Accelerator Core - Employer Sponsored Super
AustralianSuper netwealth Super Accelerator Plus
AustSafe netwealth Super Accelerator Plus - Employer Sponsored Super
Bendigo SmartOptions netwealth Super Accelerator Plus - Personal Super
BT Business Super netwealth Super Wrap - Employer Sponsored Super
BT Lifetime Super - Employer Plan NGS
BT Super for Life OnePath OneAnswer Frontier Personal Super
BT SuperWrap Essentials Personal Super Plan Perpetual Select Superannuation Plan
BT SuperWrap Personal Super Plan Plum Superannuation Fund
BUSS(Q) Premium Choice Plum Superannuation Fund - Personal Division
CareSuper - Employee Plan Prime Super
CareSuper - Personal Plan Pursuit Core Personal Superannuation
Catholic Superannuation Fund Pursuit Select Personal Superannuation
Club Super Qsuper
Colonial First State FirstChoice Employer Super REI Super Elite
EISS Super REST Acumen
Equip Personal REST Corporate
EquipExpress REST Select
Equity Super Freedom of Choice - Business Super REST Super
EquitySuper Employer Service Russell SuperSolution Master Trust - Employer Division
EquitySuper Freedom of Choice - Personal Superannuation Service Russell SuperSolution Master Trust - General Division
EquitySuper Personal Service Russell SuperSolution Master Trust - Russell iQ
First State Super StatewideSuper
Government Employees Superannuation Board - GESB Super Strategy Retirement Fund
GuildSuper Summit - Personal Super
HESTA Sunsuper for life
Hostplus Sunsuper for life Business
Intrust Super Sunsuper for life Corporate
IOOF Employer Super Tasplan
IOOF Employer Super - Personal Division Telstra Super - Personal Plus
IOOF Portfolio Service Personal Superannuation Unisuper
IOOF Pursuit Focus VicSuper FutureSaver
Kinetic Super WA Super
legalsuper  

MySuper Investment Option

Heron has also undertaken a detailed review of each products MySuper investment option. For their MySuper rating Heron has taken into account the type of option (LifeStages or Single Diversified), the reliability of the historical return history, the potential member confusion and degree of difficulty to transfer the ADAs, the TAA range, the level and type of active/passive management, actual or indicative historical investment performance, ease of understanding and fee based on the PDS disclosure. In addition, in assessing the LifeStages options Heron considered whether the structure included cohorts, the cohort age band period and the cohort curve shape.

Based on this assessment criteria, Heron awarded 5 Stars to the following 53 products.

Outstanding MySuper Option

AMG Super - Corporate Super Kinetic Super
AMP - Flexible Super legalsuper
ANZ Smart Choice Super (Employer Sponsored) Local Government Super Accumulation Scheme
Australian Meat Industry Superannuation Trust LUCRF
AustralianSuper Meat Industry Employees' Superannuation Fund
AustSafe Media Super - Employer Sponsored Account
AvSuper Media Super - Personal Account
Bendigo SmartStart Super MLC MasterKey Business Super
BUSS(Q) MySuper MTAA
CareSuper - Employee Plan NGS
Cbus Plum Superannuation Fund
Christian Super QSuper - Accumulation Account
Club Plus REI Super
Colonial First State FirstChoice Employer Super REI Super Elite
EISS Super REST Super
EquipExpress Russell SuperSolution Master Trust - Employer Division
Equity Super Freedom of Choice - Business Super Russell SuperSolution Master Trust - General Division
EquitySuper Employer Service Russell SuperSolution Master Trust - Russell iQ
EquitySuper Freedom of Choice - Personal Superannuation Service Sunsuper for life
EquitySuper Personal Service Sunsuper for life Business
First State Super Sunsuper for life Corporate
GuildSuper Tasplan
HESTA Telstra Super - Personal Plus
Hostplus TWUSUPER Industry
Intrust Super Unisuper Accumulation Super (1)
IOOF Employer Super VicSuper FutureSaver
IOOF Employer Super - Personal Division  

The assessment of personal and corporate superannuation products undertaken by Heron covers about 120 key product features that are grouped under 5 Areas of Importance of Investment Arrangements, Insurance, Contributions, Ancillary Benefits, and Communications. Investments and Insurance have the greatest impact on a product's rating with weightings of 55% and 30% respectively. Based on Heron's numeric rating the following products have been designated as Top Ten Products for Investment Features and as Top Ten Products for Insurance Features.

In alphabetical order the Top 10 Personal and Corporate Products in respect to Investment Features are:

Top 10 Investment Features

Personal Corporate
AMP Flexible Super AMP CustomSuper
Asgard eWRAP Super AMP - Flexible Super - Employer
Asgard Infinity eWRAP Super AMP SignatureSuper & Select
Colonial First State FirstChoice Wholesale Personal Super Aon Master Trust - Corporate Super - Essentials
IOOF Employer Super - Personal Division Asgard Employee Super
IOOF Portfolio Service Personal Superannuation Colonial First State FirstChoice Employer Super
IOOF Pursuit Core Personal Superannuation IOOF Employer Super
Macquarie Super Accumulator Mercer SmartSuper - Employer Section
MLC Navigator Retirement Plan Series 2 Mercer Super Trust
MLC Wrap Super - Superannuation Service Series 2 Plum Superannuation Fund

In alphabetical order the Top 10 Personal and Corporate Products in respect to Insurance Features are:

Top 10 Insurance Features

Personal Corporate
Asgard Elements Super ANZ Smart Choice Super (Employer Sponsored)
Asgard eWRAP Super Aon Master Trust - Corporate Super - Essentials
Asgard Infinity eWRAP Super Asgard Employee Super
Mentor Superannuation Master Trust BT Business Super
Nationwide Superannuation Fund - NSF Super BT Lifetime Super - Employer Plan
netwealth Super Accelerator Core - Employer Sponsored Super EquipExpress
netwealth Super Accelerator Plus - Employer Sponsored Super IOOF Employer Super
netwealth Super Wrap - Employer Sponsored Super Mercer Super Trust
Perpetual MySuper MLC MasterKey Business Super
Perpetual Select Superannuation Plan Plum Superannuation Fund

The Pension products rated as "outstanding quality" and therefore awarded 5 Heron Quality Stars are (in alphabetical order), as follows.

Outstanding Retirement Products

Personal Corporate
AMP Signature Super Allocated Pension Intrust Super Stream
Aon Allocated Pension Plan IOOF Pursuit Focus Allocated Pension
Asgard Elements Pension IOOF Pursuit Select Allocated Pension
Asgard eWRAP Pension Kinetic Smart Pension
Asgard Infinity eWRAP Pension Legalsuper Pension
AustralianSuper Pension MLC MasterKey Pension
AXA - Summit Personal Pension MLC MasterKey Pension Fundamentals
BT SuperWrap Pension Plan MLC Navigator Retirement Plan Series 2
BUSS (Q) Pension MLC Wrap Super - Pension Service
CareSuper Pension Netwealth Income Stream
Colonial First State - FirstChoice Pension NGS Super Account Based Pension
Colonial First State - FirstChoice Wholesale Pension OneAnswer Frontier Pension
Equipsuper Account Based Income Streams REST Allocated Pension
First State Super Income Stream Russel Private Active Pension
Freedom of Choice Personal Allocated Pension Plan Sunsuper Pension
HESTA Super Income Stream Unisuper Pension
Hostplus Pension Plan Vision Income Streams Allocated Pension

The Heron Quality Star Ratings have 5 levels as follows:

Rating Definition
5 Stars Outstanding
4 Stars Commendable
3 Stars Good
2 Stars Poor
1 Star Unacceptable

Details of the Heron Quality Star Ratings, including the assessment methodology and products awarded with 5 Heron Quality Stars, are featured on The Heron Partnership's web site and their Heron Advisor product research and comparison service.

Are Eligible Rollover Funds Dead?

Released: 7 May, 2015

There appears to be a common misconception that Eligible Rollover Funds (ERFs) are dead. Let’s look at the five most common myths and have them destroyed!

In Australia, an ERF is required to be authorised by APRA. In past years there have been as many as 16 ERFs operating at any one time. In today’s more regulated environment there are only 6 ERFs. Some are better than others. Money in ERFs as at 30 June 2014 just under $5.1b.

Let’s remove any confusion over which members are impacted.

Are Eligible Rollover Funds Dead?
Who is…. The general rule… Best place to send data… When will money go to ATO…
Lost The Fund can’t find you because:


They have no current address and mail has been returned; and


You have made no contribution or rollover in past 12 months.

ERF because:They try and find an address;


Charge lower fees whilst still investing the assets; but


Will not give insurance cover; also existing ERF balances will be aggregated and may raise balance to above the threshold limit.

For balances < $2000*

After 12 months (fund may have member for up to 12 months, and time will start again if given to an ERF) and no success.


ERF will advise ATO twice every year

 
Insoluble Accounts The fund can’t identify you and there is 12 months of inactivity (you then become “Lost”) As for Lost As for Lost
 
Inactive You joined an employer sponsored plan more than two years ago; and


No contribution or rollover has been received in the past five years.


(However, if a “positive act” such as advising the fund you want to stay, will mean they are no longer inactive).

ERF because:

Once a fund transfers these members to an ERF, they are no longer considered “Inactive”.

Hence the ERF does not need to transfer them to the ATO.


The ERF will try and find you and transfer to an active account;


Charge lower fees whilst still investing the assets; but


Will not give insurance cover.


If an address is found, or “positive act” given, can stay indefinitely with the ERF.




Funds need to transfer Inactive members to the ATO.

ERF’s do not.

 
Unclaimed You may be:


A temporary resident and leave Australia;


Over age 65 and no contributions or transfer is the past 2 years and after 5 years of unsuccessfully trying to find you;


Deceased and beneficiaries cannot be found.


ERF because:

They try and make contact and or find a payee;


Charge lower fees whilst still investing the assets; but


Will not give insurance cover


ATO must be advised six months after leaving Australia
 
* - note that the threshold for account balances to be transferred to the ATO is planned to increase to $4,000 from 31 December 2015, and to $6,000 from 31 December 2016.

In all cases it is best to have data cleansed by an ERF, before it is sent to the Australian Taxation Office (ATO). The ATO’s data is key to it finding a match for those that search. Note that ERFs may hold more member records than the ATO.

1. Lost and Inactive member accounts must go directly to the ATO

Many funds think they must transfer their lost and inactive account balance of $2,000 or less directly to the ATO. This is not true.

By transferring any lost members to the ERF before they become due to be transferred to the ATO, they effectively give a new 12 month period for the ERF to work at finding them. They may then go to the ATO if their balance is below the threshold and they cannot be found by the ERF. However, in that 12 month period, they have only been exposed to minimal ERF Fees whilst earning interest and having a concerted effort made to find them.

Any Inactive members can also be parked in the ERF. When an ERF receives these members they are no longer considered as inactive. In some cases members can remain indefinitely in the ERF. Whilst there the ERF will reunite them with any active accounts they find.

A good ERF should be used as a parking fund, before money is transferred to the ATO.

2. Lost and Inactive Members are better off remaining with a fund rather than transferring to an ERF

Members that need insurance for death or TPD or income protection will not receive this cover in an ERF. If a member doesn’t need insurance they don’t need the fund! Lost and Inactive members can be better off in an ERF if they do not need insurance cover.

In addition if members know they will be out of the workforce for a period, they can transfer their existing balance directly to an ERF. Not many members know they can do this, and funds do not advertise the fact.

In many cases a member is financially better off in an ERF than remaining in the fund, if they do not need insurance cover.

3. The ATO will relocate and consolidate accounts for lost and inactive members

Yes, the ATO can assist with relocations in many cases. There are also many cases they cannot assist with. If your Tax File Number (TFN) is not recorded – no matches will be found. Unless your TFN matches member details, a record will not be displayed. If your account is not classified as Lost, it may not be linked through the search (over 96 per cent of records are not lost). If you don’t have patience for completing lots of ATO questions to register, your success may be limited. ERF’s will hold records that you can’t find using the ATO search tools because of lack of TFN and/or details that don’t match.

Members need more than the ATO to help them. A good ERF can fill in the gaps.

4. A member is financially better off with the ATO than with an ERF

The ATO will give interest to money it holds, at the rate of CPI. Also, they don’t charge any fees. So, yes it does give interest, but it’s not much and has been declining! The overall gain to a member will be greater in most cases, if the money had remained parked in an ERF. For example, a $2000 account held for the 12 months to 30 June 2014, with AUSfund, Australian ERF, SuperTrace or SMF ERF, would have been better off by a significant amount when compared against the ATO and other ERFs.

How ERFs compare with ATO-based accounts
Place where money is held Annual Fee on a $2000 Account (deducted from the member account) 1 Year Net* Return to 30 June 2014 Increase on $2000 account over 1 year
ATO nil 3.0% $60.00
AUSfund ERF $14.00 11.60% $218.00
SuperTrace ERF nil 5.9% $118.00
Australian ERF $16.12 8.96% $163.08
AMP ERF nil 1.45% $29.00
Aon ERF $30.00 6.20% $94.00
SMERF $20.00 4.99% $79.80
SMF ERF nil 5.60% $112.00
Super Safeguard $12.50 2.82% $43.90
* Return shown is net of all asset based fees, excluding any asset based fees that are deducted from the member account.

There are only two scenarios where the ATO based member account would have been better off than in an ERF (AMP and Super Safeguard).

In many cases a member is financially better off in an ERF than with the ATO.

5. Trustees don’t need an ERF anymore.

This is a complete misnomer. There are three principle considerations.

Firstly, who focuses on this small group of small account balances for lost or inactive accounts? Resources and limitations of the trustee, trustee office, and administrator may mean their focus is elsewhere. What about an ERF? They are designed to deal with these members. They have a business designed to try and relocate lost members and transfer accounts to the members’ active accounts. No one is better placed to work for this group of members; it is their specialty.

Secondly, where is the cheapest place to house these lost and inactive members? Fees must be considered so as not to just gobble up any existing savings. Think about the students working part time, who frequently change employers, migrants and casual workers. A red flag should be raised when no ongoing superannuation contributions are coming in to a super fund. Trustees need to determine an appropriate design and fee arrangement. If the fund gives insurance to these members and it is not wanted and can’t be paid for, or eats away the entire balance, that can’t be a good thing. Even if no insurance is given to these members, how do the fund fees stack up against other fee options, such as an ERF? The dollar fees deducted from member accounts in the MySuper products (supposedly the cheapest options) ranges from $50 per annum to $97 per annum. Also many funds charge an exit fee which can be up to $100. How does this compare against the ERFs?

Thirdly, Trustees need to ask themselves how they can best use the services of the specialist ERFs. They are ideal for parking money. After a period of inactivity members can automatically be transferred to the ERF, to give an extra 12 months (for lost members) of a specialist working for the member. If the member recommences contributions in the fund, the fund will know and if communicated to the ERF, accounts can be rejoined with the active account. In many cases there is no advantage of sending these accounts directly to the ATO.

So we see there clearly continues to be a need and an important role for the ERFs. But Trustees should give at least some time to checking that they have a good ERF. A good ERF will deliver and will address the holes the trustee cannot fill for these lost and inactive account balances. Trustees have a duty of care to determine if their own ERF is undertaking appropriate and extensive relocation activities, and measure their successes.

Trustees need a good ERF more than ever!

Heron’s Review of Australian ERFs

The Heron Partnership has recently completed their 10th annual review and assessment of the ERFs operating in Australia. In conducting the extensive review, they have focused on the most important features of an ERF which include:

  • Relocation Activity (50% weighting)
  • Investment Arrangements (20% weighting)
  • The Impact of Fees (20% weighting) and
  • The Organisation (10% weighting)

Whilst the expectation has been that the ERF market will decrease over time, there remains over $5.095b invested in ERFs in Australia, as at 30 June 2014, and they collectively continue to represent an important proportion of Australian superannuation assets.

Average Account Balances with most ERFs have continued to grow year by year despite successful relocations, with the AMP holding the highest average account balances.

This year Heron have awarded three ERFs with the highest Heron Quality Star Rating of 5 Stars.

5 Star Heron Quality Rated ERFs – Outstanding Products


AUSfund 93.80 rating out of 100
SuperTrace 87.70 rating out of 100
AustralianERF 78.82 rating out of 100

The Heron Partnership’s Managing Director, Chris Butler, said “These ERFs rated highly over the four Areas of Importance and are to be congratulated on their continued successes with their relocation activities, achievement of investment objectives, returns to members and provision of fair fees for members.”

“We found that further scrutinisation of compliant websites was required, together with thorough reviews of the investment structures and performance. Fees continue to be of concern with some ERFs which in extreme cases show that for certain account balances the interest given does not cover the fees charged; defeating any previous protection principals which have recently been removed.”

Mr Butler said, “Heron supports the continued reduction of the number of ERFs that operate in our superannuation environment, believing that only a few are required; perhaps differentiated by their investment philosophies and being required to meet minimal hurdles in regarding to relocation activities and fees.”

Are Eligible Rollover Funds Dead?

Publication Date: 20 May 2015
Publication:: Super Review

While some might suggest that eligible rollover funds (ERFs) have passed their use-by date, new Heron Partnership analysis suggests otherwise, writes Chris Butler.

There appears to be a common misconception that Eligible Rollover Funds (ERFs) are dead. Let’s look at the five most common myths and have them destroyed!

In Australia, an ERF is required to be authorised by APRA. In past years there have been as many as 16 ERFs operating at any one time. In today’s more regulated environment there are only six ERFs. Some are better than others. Money in ERFs as at 30 June 2014 just under $5.1 billion.

Let’s remove any confusion over which members are impacted.

Are Eligible Rollover Funds Dead?
Who is…. The general rule… Best place to send data… When will money go to ATO…
Lost The Fund can’t find you because:


They have no current address and mail has been returned; and


You have made no contribution or rollover in past 12 months.

ERF because:They try and find an address;


Charge lower fees whilst still investing the assets; but


Will not give insurance cover; also existing ERF balances will be aggregated and may raise balance to above the threshold limit.

For balances < $2000*

After 12 months (fund may have member for up to 12 months, and time will start again if given to an ERF) and no success.


ERF will advise ATO twice every year

 
Insoluble Accounts The fund can’t identify you and there is 12 months of inactivity (you then become “Lost”) As for Lost As for Lost
 
Inactive You joined an employer sponsored plan more than two years ago; and


No contribution or rollover has been received in the past five years.


(However, if a “positive act” such as advising the fund you want to stay, will mean they are no longer inactive).

ERF because:

Once a fund transfers these members to an ERF, they are no longer considered “Inactive”.

Hence the ERF does not need to transfer them to the ATO.


The ERF will try and find you and transfer to an active account;


Charge lower fees whilst still investing the assets; but


Will not give insurance cover.


If an address is found, or “positive act” given, can stay indefinitely with the ERF.




Funds need to transfer Inactive members to the ATO.

ERF’s do not.

 
Unclaimed You may be:


A temporary resident and leave Australia;


Over age 65 and no contributions or transfer is the past 2 years and after 5 years of unsuccessfully trying to find you;


Deceased and beneficiaries cannot be found.


ERF because:

They try and make contact and or find a payee;


Charge lower fees whilst still investing the assets; but


Will not give insurance cover


ATO must be advised six months after leaving Australia
 
* - note that the threshold for account balances to be transferred to the ATO is planned to increase to $4,000 from 31 December 2015, and to $6,000 from 31 December 2016.

In all cases it is best to have data cleansed by an ERF, before it is sent to the Australian Taxation Office (ATO). The ATO’s data is key to it finding a match for those that search. Note that ERFs may hold more member records than the ATO.

1. Lost and Inactive member accounts must go directly to the ATO

Many funds think they must transfer their lost and inactive account balance of $2,000 or less directly to the ATO. This is not true.

By transferring any lost members to the ERF before they become due to be transferred to the ATO, they effectively give a new 12 month period for the ERF to work at finding them. They may then go to the ATO if their balance is below the threshold and they cannot be found by the ERF. However, in that 12 month period, they have only been exposed to minimal ERF Fees whilst earning interest and having a concerted effort made to find them.

Any Inactive members can also be parked in the ERF. When an ERF receives these members they are no longer considered as inactive. In some cases members can remain indefinitely in the ERF. Whilst there the ERF will reunite them with any active accounts they find.

A good ERF should be used as a parking fund, before money is transferred to the ATO.

2. Lost and Inactive Members are better off remaining with a fund rather than transferring to an ERF

Members that need insurance for death or TPD or income protection will not receive this cover in an ERF. If a member doesn’t need insurance they don’t need the fund! Lost and Inactive members can be better off in an ERF if they do not need insurance cover.

In addition if members know they will be out of the workforce for a period, they can transfer their existing balance directly to an ERF. Not many members know they can do this, and funds do not advertise the fact.

In many cases a member is financially better off in an ERF than remaining in the fund, if they do not need insurance cover.

3. The ATO will relocate and consolidate accounts for lost and inactive members

Yes, the ATO can assist with relocations in many cases. There are also many cases they cannot assist with. If your Tax File Number (TFN) is not recorded – no matches will be found. Unless your TFN matches member details, a record will not be displayed. If your account is not classified as Lost, it may not be linked through the search (over 96 per cent of records are not lost). If you don’t have patience for completing lots of ATO questions to register, your success may be limited. ERF’s will hold records that you can’t find using the ATO search tools because of lack of TFN and/or details that don’t match.

Members need more than the ATO to help them. A good ERF can fill in the gaps.

4. A member is financially better off with the ATO than with an ERF

The ATO will give interest to money it holds, at the rate of CPI. Also, they don’t charge any fees. So, yes it does give interest, but it’s not much and has been declining! The overall gain to a member will be greater in most cases, if the money had remained parked in an ERF. For example, a $2000 account held for the 12 months to 30 June 2014, with AUSfund, Australian ERF, SuperTrace or SMF ERF, would have been better off by a significant amount when compared against the ATO and other ERFs.

There are only two scenarios where the ATO based member account would have been better off than in an ERF (AMP and Super Safeguard).

In many cases a member is financially better off in an ERF than with the ATO.

5. Trustees don’t need an ERF anymore.

This is a complete misnomer. There are three principle considerations.

Firstly, who focuses on this small group of small account balances for lost or inactive accounts? Resources and limitations of the trustee, trustee office, and administrator may mean their focus is elsewhere. What about an ERF? They are designed to deal with these members. They have a business designed to try and relocate lost members and transfer accounts to the members’ active accounts. No one is better placed to work for this group of members; it is their specialty.

Secondly, where is the cheapest place to house these lost and inactive members? Fees must be considered so as not to just gobble up any existing savings. Think about the students working part time, who frequently change employers, migrants and casual workers. A red flag should be raised when no ongoing superannuation contributions are coming in to a super fund. Trustees need to determine an appropriate design and fee arrangement. If the fund gives insurance to these members and it is not wanted and can’t be paid for, or eats away the entire balance, that can’t be a good thing. Even if no insurance is given to these members, how do the fund fees stack up against other fee options, such as an ERF? The dollar fees deducted from member accounts in the MySuper products (supposedly the cheapest options) ranges from $50 per annum to $97 per annum. Also many funds charge an exit fee which can be up to $100. How does this compare against the ERFs?

Thirdly, Trustees need to ask themselves how they can best use the services of the specialist ERFs. They are ideal for parking money. After a period of inactivity members can automatically be transferred to the ERF, to give an extra 12 months (for lost members) of a specialist working for the member. If the member recommences contributions in the fund, the fund will know and if communicated to the ERF, accounts can be rejoined with the active account. In many cases there is no advantage of sending these accounts directly to the ATO.

So we see there clearly continues to be a need and an important role for the ERFs. But Trustees should give at least some time to checking that they have a good ERF. A good ERF will deliver and will address the holes the trustee cannot fill for these lost and inactive account balances. Trustees have a duty of care to determine if their own ERF is undertaking appropriate and extensive relocation activities, and measure their successes.

Trustees need a good ERF more than ever!

How ERFs compare with ATO-based accounts
Place where money is held Annual Fee on a $2000 Account (deducted from the member account) 1 Year Net* Return to 30 June 2014 Increase on $2000 account over 1 year
ATO nil 3.0% $60.00
AUSfund ERF $14.00 11.60% $218.00
SuperTrace ERF nil 5.9% $118.00
Australian ERF $16.12 8.96% $163.08
AMP ERF nil 1.45% $29.00
Aon ERF $30.00 6.20% $94.00
SMERF $20.00 4.99% $79.80
SMF ERF nil 5.60% $112.00
Super Safeguard $12.50 2.82% $43.90
* Return shown is net of all asset based fees, excluding any asset based fees that are deducted from the member account.

AUSfund tops ERF ratings again

Publication Date: 17 May 2015
Publication:: Super Review
Journalist:: Mike Taylor

AUSfund has emerged as the top-rated eligible rollover fund (ERF) in the latest Heron Partnership ratings.

The ratings, released to Super Review this week, were part of the Heron Partnership’s annual assessment of the ERF market, which included an analysis concluding that while the size of the ERF market may have reduced, the funds remain an important part of the superannuation sector.

The warning issued by the Heron Partnership was that superannuation trustees needed to be careful to choose the most appropriate ERF.

“A good ERF will deliver and will address the holes the Trustee cannot fill for these lost and inactive account balances,” the analysis said.

“Trustees have a duty of care to determine if their own ERF is undertaking appropriate and extensive relocation activities, and measure their successes.”

Dealing with the latest ERF ratings, Heron Partnership managing director, Chris Butler, the three top-rated funds – AUSfund, SuperTrace and Australian ERF – had rated highly over the four areas of importance assessed by his firm.

“They are to be congratulated on their continued successes with their relocation activities, achievement of investment objectives, returns to members and provision of fair fees for members,” he said.

Describing the processes followed by the Heron Partnership, Butler said it found that further scrutinisation of compliant websites had been required, together with thorough reviews of the investment structures and performance.

“Fees continue to be of concern with some ERFs which in extreme cases show that for certain account balances the interest given does not cover the fees charged; defeating any previous protection principals which have recently been removed,” he said.

Butler said his firm supported the continued reduction of the number of ERFs that operate in our superannuation environment, believing that only a few are required; “perhaps differentiated by their investment philosophies and being required to meet minimal hurdles in regarding to relocation activities and fees.”

Top-rated ERFs
AUSfund 93.80 rating out of 100
SuperTrace 87.70 rating out of 100
Australian ERF 78.82 rating out of 100

Heron Quality Star Ratings - 2015 Calendar Year Assessment

Released: 9 February, 2015

2015 Calendar Year Assessment

The latest half-yearly assessment of superannuation funds for calendar year 2015 has just been released by The Heron Partnership, a leading independent superannuation and actuarial firm.

This is the 18th assessment undertaken by Heron and it covered 145 superannuation products, which included 120 personal products (comprising 60 master trusts & 60 industry funds) and 25 master trust and industry fund products specifically designed for the corporate superannuation market.

The products that achieved the highest numeric rating in each product classification receive Heron’s Top Rated Product award for that classification and are awarded 6 Stars.

The Heron Partnership’s Managing Director, Chris Butler, said, “We are delighted to announce that AustralianSuper and MLC MasterKey Business Super have again achieved the highest numeric rating for their respective product category in our 2015 assessment and therefore receive the Top Rated Product awards”.

Heron’s Top Rated Superannuation Products for 2015

Top Rated Personal Product AustralianSuper
Top Rated Corporate Product MLC MasterKey Business Super

Mr Butler said “This is the 3rd occasion that AustralianSuper has achieved Top Rated Product status and the 6th occasion that MLC MasterKey Business Super has been judged as the Top Rated Product within the Corporate superannuation division.”

The 85 superannuation products rated as “outstanding quality” and therefore awarded 5 Heron Quality Stars are (in alphabetical order) as follows.

Outstanding Personal Superannuation Products

AMG Universal Super - Corporate Super IOOF Portfolio Service Personal Superannuation
AMP CustomSuper IOOF Pursuit Focus
AMP Flexible Super Legal Super
AMP Flexible Super - Employer Local Government Superannuation Scheme Accumulation Scheme
AMP SignatureSuper Macquarie Super Accumulator
AMP SignatureSuper - Select Mercer SmartSuper
ANZ Smart Choice Super (Employer Sponsored) Mercer SuperTrust
ANZ Smart Choice Super & Pension MLC MasterKey Business Super
Aon Master Trust - Corporate Super Essentials MLC MasterKey Super & Pension
Aon Master Trust - Personal Super Essentials MLC MasterKey Super Fundamentals
Asgard Elements Super MLC Navigator Retirement Plan
Asgard Employee Super MLC Navigator Retirement Plan Series 2
Asgard eWRAP Super MLC Wrap Super - Super Service
Asgard Infinity eWRAP Super MLC Wrap Super - Super Service Series 2
AustralianSuper Nationwide Superannuation Fund - NSF Super
BT Business Super netwealth Super Accelerator Core – Employer Sponsored Super
BT Lifetime Super - Employer Plan netwealth Super Accelerator Plus – Employer Sponsored Super
BT SuperWrap Essentials Personal Super Plan netwealth Super Wrap - Employer Sponsored Super
BT SuperWrap Personal Super Plan NGS
BUSS(Q) Premium Choice OnePath Corporate Super
CareSuper - Employee Plan OnePath Integra Super
CareSuper - Personal Plan OnePath OneAnswer Frontier Personal Super
Club Super Perpetual Select Superannuation Plan
Colonial First State FirstChoice Employer Super Plum Superannuation Fund
Colonial First State FirstChoice Personal Super Plum Superannuation Fund - Personal Division
Colonial First State FirstChoice Wholesale Personal Super Pursuit Core Personal Superannuation
EISS Super Pursuit Select Personal Superannuation
Equip Personal REST Acumen
EquipExpress REST Corporate
Equity Super Employer Service REST Select
Equity Super Freedom of Choice - Business Super REST Super
Equity Super Freedom of Choice - Corporate Super Russell SuperSolution Master Trust - Employer Division
Equity Super Freedom of Choice - Personal Super Service Russell SuperSolution Master Trust - General Division
First State Super Russell SuperSolution Master Trust - Private Division
Generations - Personal Super Strategy Retirement Fund
Government Employees Superannuation Board - GESB Super Summit Personal Super
HESTA Sunsuper Corporate
HOSTPLUS Sunsuper for life
HOSTPLUS Executive Tasplan
HOSTPLUS Personal Super Plan Telstra Super - Personal Plus
Intrust Super Unisuper Accumulation Super (1)
IOOF Employer Super VicSuper Future Saver
IOOF Employer Super - Personal Division  

MySuper Investment Option

Heron has specifically reviewed each products MySuper investment option. For their MySuper rating Heron has taken into account the type of option (LifeStages or Single Diversified), the reliability of the historical return history, the potential member confusion and degree of difficulty to transfer the ADAs, the TAA range, the level and type of active/passive management, actual or indicative historical investment performance, ease of understanding and fee based on the PDS disclosure. In addition, in assessing the LifeStages options Heron considered whether the structure included cohorts, the cohort age band period and the cohort curve shape.

Based on this assessment criteria, Heron awarded 5 Stars to the following 46 products.

Outstanding MySuper Option

AMG Universal Super - Corporate Super Intrust Super
AMP Flexible Super IOOF Employer Super
AMP SignatureSuper Kinetic Super
ANZ Smart Choice Super (Employer Sponsored) Legal Super
AUSCOAL Superannuation Fund Local Government Super Accumulation Scheme
Australian Meat Industry Superannuation Trust LUCRF
AustralianSuper Media Super
AustSafe MLC MasterKey Business Super
AvSuper MTAA
Bendigo SmartStart Super NSF Super
BUSS(Q) MySuper NGS
CareSuper Plum Superannuation Fund
Cbus Qsuper
Christian Super REI Super
Club Plus REST Super
Colonial First State FirstChoice Employer Super Russell SuperSolution Master Trust
EISS Super StatewideSuper
Equip Sunsuper
Equity Super Tasplan
First State Super Telstra Super
FIRST Super Unisuper
HESTA VicSuper FutureSaver
HOSTPLUS

The assessment of personal and corporate superannuation products undertaken by Heron covers about 120 key product features that are grouped under 5 Areas of Importance of Investment Arrangements, Insurance, Contributions, Ancillary Benefits, and Communications. Investments and Insurance have the greatest impact on a product’s rating with weightings of 55% and 30% respectively. Based on Heron’s numeric rating the following products have been designated as a Top Ten Product for Investment Features and Insurance Features, based on Heron’s numeric rating.

In alphabetical order the Top 10 Personal and Corporate Products in respect to Investment Features are:

Top 10 Investment Features

Personal Corporate
Asgard eWRAP Super AMP CustomSuper
Asgard Infinity eWRAP Super AMP Flexible Super - Employer
Colonial First State FirstChoice Wholesale Personal Super AMP SignatureSuper
IOOF Employer Super - Personal Division AMP SignatureSuper - Select
IOOF Portfolio Service Personal Superannuation Colonial First State FirstChoice Employer Super
Macqquarie Super Accumulator IOOF Employer Super
MLC Navigator Retirement Plan Mercer SuperTrust
MLC Navigator Retirement Plan Series 2 Mercer SmartSuper - Employer Section
MLC Wrap Super - Superannuation Service MLC MasterKey Business Super
MLC Wrap Super - Superannuation Service Series 2 Plum Superannuation Fund

In alphabetical order the Top 10 Personal and Corporate Products in respect to Insurance Features are:

Top 10 Insurance Features

Personal Corporate
ANZ Smart Choice Super ANZ Smart Choice Super (Employer Sponsored)
Asgard Elements Super Asgard Employee Super
Asgard eWRAP Super BT Business Super
Asgard Infinity eWRAP Super BT Lifetime Super - Employer Plan
Mentor Superannuation Master Trust IOOF Employer Super
NSF Super Mercer Super Trust
NGS Super MLC MasterKey Business Super
Perpetual MySuper OnePath Corporate Super
Perpetual Select Superannuation Plan Plum Superannuation Fund
Sunsuper for life Sunsuper Corporate

The Heron Quality Star Ratings have 5 levels as follows:

Rating Definition
5 Stars Outstanding
4 Stars Commendable
3 Stars Good
2 Stars Poor
1 Star Unacceptable

Details of the Heron Quality Star Ratings, including the assessment methodology and products awarded with 5 Heron Quality Stars, are featured on The Heron Partnership's web site and their Heron Advisor product research and comparison service.

Heron Quality Star Ratings - 2014/15 Financial Year Superannuation Product Assessment Released

Released: 1 August, 2014

2014/15 Financial Year Superannuation Product Assessment Released

The latest half-yearly assessment of superannuation funds for financial year 2014/15 has just been released by The Heron Partnership, a leading independent superannuation and actuarial firm.

Heron, in there 17th public assessment, covered 227 superannuation products, which included 123 personal products (comprising 60 master trusts & 63 industry funds), 25 master trust and industry fund products specifically designed for the corporate superannuation market and 79 retirement products.

The superannuation products rated as “outstanding quality” and therefore awarded 5 Heron Quality Stars are (in alphabetical order) as follows.

Outstanding Superannuation Products

AMG Universal Super - Corporate Super HOSTPLUS Executive
AMP CustomSuper HOSTPLUS Personal Super Plan
AMP Flexible Super Intrust Super
AMP Flexible Super - Employer IOOF Employer Super
AMP SignatureSuper IOOF Employer Super - Personal Division
AMP SignatureSuper Select IOOF Portfolio Service Personal Superannuation
AMP Summit - Personal Super legalsuper
ANZ Smart Choice Super (Employer Sponsored) Local Government Super Accumulation Scheme
ANZ Smart Choice Super and Pension Macquarie - Super Accumulator
Aon Master Trust - Corporate Super - Essentials Mercer SmartSuper - Employer Section
Aon Master Trust - Personal Super Essentials Mercer Super Trust
Asgard Elements Super Mercy Super - Mercy Super
Asgard Employee Super MLC MasterKey Business Super
Asgard eWRAP Super MLC MasterKey Super & Pension
Asgard Infinity eWRAP Super MLC MasterKey Super Fundamentals
AustralianSuper MLC Navigator Retirement Plan
AustralianSuper Corporate MLC Navigator Retirement Plan Series 2
AustralianSuper Finsuper Division MLC Wrap Super - Super Service
AustralianSuper Personal MLC Wrap Super - Super Service Series 2
AustralianSuper Public Sector Division Nationwide Superannuation Fund
AustralianSuper Westscheme Division netwealth Super Accelerator Core – Employer Sponsored Super
BT Business Super netwealth Super Wrap - Employer Sponsored Super
BT Lifetime Super - Employer Plan NGS
BT SuperWrap Essentials Personal Super Plan OnePath Corporate Super
BT SuperWrap Personal Super Plan OnePath Integra Super
BUSS(Q) Premium Choice OnePath OneAnswer Frontier Personal Super
CareSuper - Employee Plan Perpetual Select Superannuation Plan
CareSuper - Personal Plan Plum Superannuation Fund
Club Super Plum Superannuation Fund - Personal Division
Colonial First State FirstChoice Employer Super Pursuit Core Personal Superannuation
Colonial First State FirstChoice Personal Super Pursuit Select Personal Superannuation
Colonial First State FirstChoice Wholesale Personal Super REST Acumen
EISS Super REST Corporate
Equip Personal REST Select
EquipExpress REST Super
Equity Super Freedom of Choice - Business Super Russell SuperSolution Master Trust - Employer Division
Equity Super Freedom of Choice - Corporate Super Russell SuperSolution Master Trust - General Division
Equity Super Freedom of Choice - Personal Super Service Russell SuperSolution Master Trust - Private Division
EquitySuper Employer Service Strategy Retirement Fund
First State Super Sunsuper Corporate
Generations - Personal Super Sunsuper for life
Government Employees Superannuation Board – (GESB) Super Tasplan
GuildSuper Telstra Super - Personal Plus
HESTA Unisuper Accumulation Super (1)
HOSTPLUS VicSuper FutureSaver

The assessment of personal and corporate superannuation products undertaken by Heron covers about 120 key product features that are grouped under 5 Areas of Importance of Investment Arrangements, Insurance, Contributions, Ancillary Benefits, and Communications. Investments and Insurance have the greatest impact on a product’s score with respective weightings of 55% and 30%.

In respect to the two most important aspects assessed, Heron has classified the following superannuation products as a Top Ten Product for Investment Features and Insurance Features.

In alphabetical order the Top 10 Personal and Corporate Products in respect to Investment Features are:

Top 10 Investment Features

Personal Corporate
Asgard Elements Super Asgard Employee Super
Asgard eWRAP Super AMP CustomSuper
Asgard Infinity eWRAP Super AMP Flexible Super - Employer
IOOF Employer Super - Personal Division AMP SignatureSuper
IOOF Portfolio Service Personal Superannuation AMP SignatureSuper Select
MLC Navigator Retirement Plan IOOF Employer Super
MLC Navigator Retirement Plan Series 2 Mercer SmartSuper - Employer Section
MLC Wrap Super - Super Service Mercer Super Trust
MLC Wrap Super - Super Service Series 2 MLC MasterKey Business Super
Macquarie - Super Accumulator Russell SuperSolution Master Trust - Employer Division

In alphabetical order the Top 10 Personal and Corporate Products in respect to Insurance Features are:

Top 10 Insurance Features

Personal Corporate
Asgard Elements Super ANZ Smart Choice Super (Employer Sponsored)
Asgard eWRAP Super Aon Master Trust - Corporate Super - Essentials
Asgard Infinity eWRAP Super Asgard Employee Super
ANZ Smart Choice Super and Pension BT Business Super
HOSTPLUS BT Lifetime Super - Employer Plan
Nationwide Superannuation Fund IOOF Employer Super
NGS Super MLC MasterKey Business Super
Perpetual MySuper OnePath Corporate Super
Perpetual Select Superannuation Plan Plum Superannuation Fund
Sunsuper for life Sunsuper Corporate

The Pension products rated as “outstanding quality” and therefore awarded 5 Heron Quality Stars are (in alphabetical order), as follows.

Outstanding Retirement Products

AMP Flexible Lifetime Allocated Pension Plan HOSTPLUS Pension Plan
AMP Signature Super Allocated Pension IOOF Pursuit Focus Allocated Pension
Aon Allocated Pension Plan IOOF Pursuit Select Allocated Pension
Asgard Elements Pension LegalSuper Pension
Asgard eWRAP Pension MLC MasterKey Pension
Asgard Infinity eWRAP Pension MLC MasterKey Pension Fundamentals
AustralianSuper Pension MLC Navigator Retirement Plan Series 2
AXA - Summit Personal Pension MLC Wrap Super - Pension Service
BT SuperWrap Pension Plan Netwealth Income Stream
BUSS (Q) Pension NGS Super Account Based Pension
Caresuper Pension OnePath OneAnswer Frontier Pension
Colonial First State - FirstChoice Pension REST Allocated Pension
Colonial First State - FirstChoice Wholesale Pension Russel Private Active Pension
EISS Pension Smartsave Smart Pension
Equipsuper Account Based Income Streams Statewide Account Based Pension
First State Super Income Stream Sunsuper Pension
HESTA Super Income Stream Vision Income Streams Allocated Pension

In assessing pension products, Heron reviewed each product’s investment arrangements, pension payment frequency, payment methods, options available in respect to the nomination of beneficiaries, options for payment of a death benefit, communication events with members including ease of access for members to obtain information and any ancillary benefits offered. The main focus is on investment arrangements.

The Heron Quality Star Ratings have 5 levels as follows:

Rating Definition
5 Stars Outstanding
4 Stars Commendable
3 Stars Good
2 Stars Poor
1 Star Unacceptable

Details of the Heron Quality Star Ratings, including the assessment methodology and products awarded with 5 Heron Quality Stars, are featured on The Heron Partnership's web site and their Heron Advisor product research and comparison service.