Retail superannuation funds are not passing on cost savings to members because of a tendency to recommend in-house products, the prudential regulator has found. A study by the Australian Prudential Regulation Authority found that while large not-for-profit industry funds incurred lower investment management costs than smaller schemes, the same was not true of their retail rivals, which are owned by the big banks and listed wealth companies. According to APRA, the investment management expense of the smallest 20 per cent of industry funds was 1.6 per cent, against a 1.3 per cent fee for the biggest 20 per cent of funds.
Retail super members losing out on savings & Commercial Super Fund Costs
27 March 2012 | Sally Patten, The Australian Financial Review, page 10