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.”