Super fees double in five years

FEES for superannuation and pension funds have doubled in the past five years, says consulting firm Watson Wyatt.

Super fees double in five years

FEES for superannuation and pension funds have doubled in the past five years, says consulting firm Watson Wyatt.

According to the data, fees now average about 1.1 per cent of funds under management, compared to around 0.65 per cent in 2002. Most of the fees are being paid to brokers and external investment managers.

Watson Wyatt head of investment consulting Graeme Miller said the research revealed many pension funds were paying "top-notch fees for average fund performances''.

"This is obviously a good deal for investment managers, but not necessarily for their investors,'' he said.

"While we strongly believe managers should be fairly compensated, fees are currently too high for the value they deliver, particularly as we enter a lower-return environment.''

Meanwhile, Superannuation Minister Nick Sherry's superannuation advisory group has met for the first time in Canberra.

Senator Sherry said the group provides a way for the Government to consult directly with the industry on relevant issues.