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Super fee squeeze continues

Fifty-six superannuation products dropped their fees in the March quarter, according to Rainmaker Information's analysis of 475 product disclosure statements.

Overall, 152 superannuation products updated their PDS's between January and March 2021. Of this, about 10% (16 products) increased their fees, 37% (56 products) decreased their fees and 53% left their fees unchanged.

The share of superannuation products that lowered their fees, was smaller than the December quarter.

"While a 37% quarterly fee decrease ratio is huge, it's one-third lower than the 56% ratio it was last quarter. The implication is that there is an overwhelming trend towards super funds lowering their fees," Rainmaker executive director of research and compliance Alex Dunnin said.

Looking at the mix of fee cuts amongst the fee cutters: about a third lowered their administration fees (similar to 30% in previous quarter), about 17% lowered investment management fees (down from 38% last quarter), about 60% decreased ICR (up from 40% last quarter).

Dunnin said the 16 products increasing their fee during the period were a surprise.

"In today's superannuation policy environment, trustees that increase their fees are brave indeed and should expect a lot of regulatory scrutiny and perhaps a summons to a parliamentary committee," Dunnin said.

Read more: Rainmaker InformationAlex Dunnin