New kid on the ratings block: Heron

Superannuation consulting group The Heron Partnership has joined Chant West, Rainmaker and SuperRatings in the superannuation product ratings game with the launch of its own fund ratings service.

The group reviewed 98 funds from the industry fund, master trust and multi-employer fund segments. The ratings process uses a 100 point scheme where funds are rated based on investment arrangements (55 per cent of standard weighting), insurance (30 per cent) and five per cent each on ancillary benefits, communication and contributions.

"We've been doing product assessments for four years now and with the introduction of choice of fund we thought we'€™d make our ratings public," said Chris Butler, the company's managing director. He added, "Financial planners already use our product called Heron Advisor and this is simply an extension of that."

In the inaugural 2006 Quality Star Ratings, 17 corporate funds were rated "outstanding", or five-stars, including AMP CustomSuper, BT Lifetime Super and ING Corporate Super. In the retail funds category, AGEST, AXA Summit and HOST-PLUS Superannuation were among the 22 funds that were rated "outstanding".