Super fees head south
Fees in the superannuation industry are on their way down, according to data released by the Investment and Financial Services Association (IFSA).
The data, compiled by Rice Walker Actuaries, showed that fees across the industry, expressed as a percentage of assets, fell from 1.36 per cent in June 2002 to 1.29 per cent in June 2004.
Commenting on the data, IFSA chief executive Richard Gilbert said the survey represented the third in an on-going series that indicated fees and charges were trending downward.
“With the introduction of choice of fund is likely to become even more competitive,” he said.
“One area which has received a lot of focus recently is the comparison of retail and industry fund fees,” Gilbert said.
“The report shows that within the wholesale sector of the market fee levels for these funds are very similar with retail corporate super master trusts charging 1.14 per cent and industry funds 1.17 per cent.
The fact is that there are good industry funds and there are good retail funds and consumers need to make sure that they do their homework, seek advice and work out what’s best for their individual circumstances,” he said.
The survey findings have been questioned by the Industry Fund Services executive chair Garry Weaven who said: "This is a survey about particular employers who have particular deals and therefore pretty meaningless in the question of choice. It doesn't show how much of the actual cost of superannuation administration is being borne by the employer.”
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