Finance company Aviva's latest review of the mortgage funds industry has awarded four mortgage funds a four star rating while no funds were awarded the highest five star rating.
The review covered the mortgage funds listed on the company's Navigator investment platform. This included seven mortgage funds from six managers.
The funds that received the four star rating included Australian Unity Wholesale Mortgage Income Trust, Axa Wholesale Australian Monthly Income Fund, Challenger Howard Wholesale Mortgage Fund and Perpetual Wholesale Monthly Income Fund.
The level of fees charged by mortgage funds were considered high given the amount allocated to cash, according to Aviva Research manager Stuart Fechner.
"It would be a timely and commendable gesture for some managers to rebate a portion of their fees back to investors," Fechner said.
