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Superannuation fees, asset allocation and fund performance

Author

Listed:
  • Andrew Ainsworth

    (Finance Discipline, University of Wollongong, Wollongong, NSW, Australia)

  • Shumi Akhtar
  • 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)

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

Suggested Citation

  • Andrew Ainsworth & Shumi Akhtar & Adam Corbett & Adrian Lee & Terry Walter, 2024. "Superannuation fees, asset allocation and fund performance," Australian Journal of Management, Australian School of Business, vol. 49(3), pages 340-365, August.
    • Handle: RePEc:sae:ausman:v:49:y:2024:i:3:p:340-365
    DOI: 10.1177/03128962221137775
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    More about this item

    Keywords

    Administration fees; asset allocation; investment fees; superannuation funds;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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