Superannuation consultant NMG says the focus on fees in Australia is “myopic” citing new research from the firm’s UK partner Jane Craig that investors are less interested.
NMG’s study of 15,000 UK pension fund members found what they really want from their fund.
The top answer was unsurprisingly "A good return on my money"', but Ms Craig was surprised by the lack of priority given by members to fees.
The option "Charges in line with industry average" was only the 13th most popular answer out of 23 options.
"So what consumers say they want isn’t necessarily being reflected in regulatory actions. That isn’t to say lower fees aren’t in members’ best interests, but it does indicate a narrow approach," said NMG.
"The move away from the myopic focus on fees and costs in favour of a more nuanced view of what matters to members is to be applauded and is in line with what consumers – or UK pension fund members at least – identify as being of value.”