Superannuation fees, asset allocation and fund performance
Authors:
- Andrew AinsworthAAAndrew Ainsworth
- Shumi AkhtarSAShumi Akhtar
- Adrian LeeALAdrian Lee
- Terry WalterTWTerry Walter
- 23 November 2022
- journal article
- research article
- Published by SAGE Publications in Australian Journal of Management
- Vol. 49 (3) , 340-365
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: G11Keywords
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