Superannuation fees, asset allocation and fund performance
Publication Name
Australian Journal of Management
Abstract
Superannuation fees have come under public scrutiny in recent years with the belief they are too high. We examine the determinants of fees and their relationship with fund performance. Superannuation funds with higher investment fees have higher allocations to asset classes that trade in more complex markets. For-profit retail funds charge both higher investment and administration fees than other funds. Funds with higher investment fees do not generate higher returns than the least expensive funds. These findings suggest that superannuation members may not earn higher after-fee risk-adjusted returns by holding funds with higher fees. JEL Classification: G11
Open Access Status
This publication is not available as open access
Funding Number
T004