Purchase Australian: it's cheaper
It is becoming cheaper to invest in Australian shares and fixed interest, but more expensive to go international, according to the latest InTech investment manage-ment fees survey.
It is becoming cheaper to invest in Australian shares and fixed interest, but more expensive to go international, according to the latest InTech investment manage-ment fees survey.
The survey of wholesale investment management fees, which include pooled funds and individually managed portfolios, found that fees charged for Australian share funds have decreased on average by 11 per cent in the past three years. Fees charged for international funds, on the other hand, have blown out by 10 per cent in the past two years.
Fixed interest funds followed the same pattern. Average fee levels for Australian fixed interest funds have fallen by about 7 per cent, while international fixed inter-est charges have risen by 9 per cent during the same time.
Despite increasing competition in the superannuation industry, investment man-agement fees for the major flagship pooled market-linked funds have remained static, InTech found. However, the findings also show little correlation between in-vestment performance and fees charged.
Fees charged for capital stable funds, meanwhile, fell on average by 5 per cent over three years.
Ends
Recommended for you
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
