Superannuation fees, asset allocation and fund performance

Andrew Ainsworth, Shumi Akhtar, Adam Corbett, Adrian Lee and Terry Walter
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Andrew Ainsworth: Finance Discipline, University of Wollongong, Wollongong, NSW, Australia
Adam Corbett: Finance Discipline, The University of Sydney, Sydney, NSW, Australia
Adrian Lee: Deakin Business School, Burwood, VIC, Australia
Terry Walter: Finance Discipline, University of Wollongong, Wollongong, NSW, Australia

Australian Journal of Management, 2024, vol. 49, issue 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: G11

Keywords: Administration fees; asset allocation; investment fees; superannuation funds (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:49:y:2024:i:3:p:340-365

DOI: 10.1177/03128962221137775

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