Investment performance trumps low fees - Dunnin
Investments | 26/10/2015 |
2 min read
The difference in investment performance between super's best-performing and worst-performing MySuper investment options was about six times greater than the difference between the highest and lowest fees charged by funds, according to industry consultants, Rainmaker Information.
The company's Research Director, Alex Dunnin, said while lower fees are a fantastic outcome of government reforms to streamline the superannuation sector, if super fund trustees thought low fees were all that mattered, they'd shut down their funds tomorrow and slide all their members across into a Retirement Savings Account.
"Of course they won't for one simple reason: returns do matter, and they know it," he said. "Returns are hard to achieve year in year out, and we also have the truism that you can't predict future returns. But this doesn't mean returns are not important of that they just happen by some accident of Immaculate Conception.
"Achieving respectable and competitive investment returns isn't the only thing super funds have to do, but without them no much of the rest really matters," Mr Dunnin said.
You can see Alex Dunnin's full commentary in this article in FS Super.