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Links to Research Summary Pages
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Our approach:
The research shows that higher fees lead to poorer performance. Investment portfolios should be accessed on a low cost basis thus adding to the bottom line investment result.
The research:
Is there a Positive Relationship Between Superannuation Fund Costs and Returns?
Economic Papers (Economic Society of Australia)
Michael Drew and Jon Stanford
September, 2003
What the paper says: There is no evidence that paying higher fees leads to higher superannuation returns. Indeed, the opposite would appear to be the case with higher fees leading to poorer performance.
In the author's own words: funds that levy the lowest MERs (fees), produced, as a group, the best returns . the highest MER group, delivered the most inferior returns to contributors.
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