Chant West

Overview

Retirement income streams – primarily allocated pensions – have been one of the financial services success stories of recent years. Now, with the Government’s landmark decision to remove personal pensions from the income tax system from 1 July (for people over 60), these products are set to enjoy a fresh surge of popularity.

Against this background, it is essential that service providers, individuals and advisers have access to independent research on pension products that allows them to compare funds on a strictly ‘apples with apples’ basis.

Chant West’s Pension research helps individuals (and their advisers) compare pension funds.

Ratings Definitions

Ratings range from 5 Apples, our highest rating, to 1 Apple, our lowest rating.

Rating		Definition
		Highest quality fund
		High quality fund
		Sound quality fund
		Low quality fund
		Lowest quality fund

Ratings Methodology

A Chant West rating sums up our overall view on the merits of a particular fund relative to our assessment of industry best practice. It takes into account five main criteria: organisational strengths, investments, fees, administration and member services.

We determine a score for each of the main criteria and then weight these to provide an overall rating for the fund. The criteria and the weights we assign to them are set out in the table below. For each of the main criteria we have a further sub-set of detailed criteria.

The criteria and weightings we use have been developed over a period of 10 years and reflect our considerable experience in the superannuation marketplace.

Main Rating Criteria	Weights
	%
Organisational Strengths	10
Investments	40
Fees	20
Administration	10
Member Services	20
Total	100

A key aspect of our ratings is that they relate only to multi-manager investment options. This is because most members are invested in this type of option. We therefore focus on the quality of a fund’s investment consultant and any internal investment resources, the fund's investment governance regime and the structure of the investment portfolios.

Investment beliefs and processes, and the quality of the people involved, are far more important to us than past performance, which is generally a poor indicator of future performance. In fact, past performance counts for only 4% of our overall assessment.

Another key aspect of our ratings is our assessment of a fund’s administration from a member’s perspective. Good administration is essential for a fund to deliver high quality member services – the key to a good member experience.

Our ratings are based on information that is either publicly available or is provided directly to us by the funds themselves (and summarised in our Product Summaries). Each service provider has reviewed the information (as it applies to its fund) for its accuracy, but we have not audited or independently verified it.

We will review the ratings in December 2010. However, we may change, suspend or withdraw them at any time.

Disclaimer

© Chant West Pty Limited (ABN 75 077 595 316) 1997 - 2010. You may only use this document for your own personal, non-commercial use. This document may not be copied, reproduced, scanned or embodied in any other document or distributed to another party unless you have obtained the prior written consent of Chant West to do so.

The information above is based on data supplied by third parties. While such data is believed to be accurate, Chant West does not accept responsibility for any inaccuracy in such data. Past performance is not a reliable indicator of future performance. The products, reports and ratings do not contain all of the information that is required in order to evaluate the nominated service providers, and you are responsible for obtaining such further information.

This information does not constitute financial product advice. However, to the extent that this document may be considered to be general financial product advice then you acknowledge that you have been provided with a Financial Services Guide and Chant West warns that: (a) Chant West has not considered any individual person’s objectives, financial situation or particular needs; (b) individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation; and (c) individuals should obtain a Product Disclosure Statement from the relevant fund provider before making any decision about whether to acquire a financial product from that fund provider.