The Investment and Financial Services Association (IFSA) has released its annual superannuation fees analysis for 2002. It found that despite significant legislative and compliance cost pressures, fees have largely remained static.

The report is the only one of its kind to analyse each superannuation market segment in regards to type of investors, investment options, costs, education and products design.

Super areas with a decrease in fees include personal, corporate, wholesale master trust, government and industry funds; those that went up were self-managed funds, retail master trusts and post-retirement products. 

The report shows significant compliance costs have arisen as companies have begun to prepare for the FSRA and changes in the tax regime. Products with higher expenses – and which were identified in the report as a problem – include the cost of advice and distribution. 

IFSA CEO Richard Gilbert says fees expressed as a percentage of assets have remained “reasonably constant” over the past three years. He attributes most of the cost fluctuation to changes in the product mix and market volatility, but says it’s difficult to make comparisons between the fees charged by each segment because they vary in the types of services they provide.