The number of consistently underperforming superannuation and managed funds in Australia has fallen to 521, down from 638 in 2016, according to a new Stockspot report. The Stockspot Fat Cat Funds Report, which aims to call attention to consistently underperforming Australian superannuation and managed funds, dubs the worst-offending group as ‘Fat Cat Funds’. The report defines a ‘Fat Cat Fund’ as a superannuation fund that has consistently underperformed its peers over one, three and five years, with returns that have underperformed by 10 per cent or more over the five-year analysis period.
Among the 4,102 funds analysed, it was found that the number of ‘Fat Cat Funds’, the amount of money managed and percentage of fees charged had all fallen since last year, which Stockspot founder Chris Brycki described as “good news”. “This [is] due partly to attrition (funds closing), partly luck (funds don’t qualify as Fat Cats if they just have one good year of performance), and partly due to some funds reducing their fees,” Mr Brycki wrote in the report. “The unfortunate news is that 521 Fat Cat Funds still exist and $45.6 billion is trapped inside them.”
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