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Heron rates star performers
AMP Signature Super and Sunsuper Personal have emerged at the top of the list in the Heron Quality Star Ratings, which was launched last month.
The new ratings system sees Heron expand its long-standing product assessment process into a fully-fledged ratings service, which will see Australia’s major superannuation funds assessed twice a year.
Heron Partnership managing director Christopher Butler says he believes the new ratings system is precise because it assesses the funds against around 150 benchmarks.
He says the primary goal of the ratings is to provide a realistic and objective representation of the strengths and weaknesses of a product, with the ratings being based on feature-specific benchmarks.
“Unlike some other rating systems, there is no limit to the number of products that can receive a five star rating,” Butler says.
The ratings reveals 17 corporate superannuation products have gained a five star rating from Heron, while 22 industry fund products have gained a five star rating, with AMP Signature Super leading in the corporate funds arena and Sunsuper Personal emerging top of the class with respect to retail offerings.
Butler says that under the Heron Quality Star ratings system, product issuers are encouraged to improve their products.
“We also disclose a numeric score, so financial planners subscribing to Heron Advisor are able to differentiate within each of the star levels,” he says.
Looking at the outcome of the latest star ratings process, Butler says that the superannuation market is competitive, and that those products that have been awarded a five star rating have a strong market presence, due to the overall quality of the service they provide to their clients, and the package of features they invariably offer to meet the needs of their clients.
Butler says those features includes:
* a good range of multi-manager investment options that accommodate conservative through to very aggressive investors;
* a range of single manager diversified and sector only investment options to accommodate the investor who wants to be more involved in the investment manger selection;
* good comparative investment performance;
* an easy to understand, transparent and competitive fee structure;
* the inclusion of a range of ancillary benefits, such as discounted housing loans, credit cards and travel;
* good access to information, education and advice for the investor through a call centre, email contact, website, written communications and financial planners;
* a range of insurance options to cover death, total and permanent disablement and salary continuance arrangements; and
* few restrictions that have the potential to limit an investor’s options (such as minimum contribution requirements, overbearing health evidence requirement etc,).
AUTHOR
Mike Taylor
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