This makes sense, given industry superannuation funds easily outperformed their retail counterparts over the last decade, according to Chant West:
The primary reason for retail funds’ industry underperformance likely relates to their excessive fees.
According to the Productivity Commission (PC), retail funds’ fees are way above not-for-profit funds:
As such, retail funds deliver lower net average returns:
The PC also found that management fees in Australia are much higher than in most other OECD countries, driven largely by retail superannuation funds.
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