Net benefits delivered to members over the long term, rather than fees, should be the primary focus of the superannuation industry, said Mr Bresnahan.
The comments come as researchers SuperRatings and ChantWest delivered their finding that the median balanced fund option gained 1.2 per cent in July.
“Members should have regard for the impact of both investment returns and fees, as at the end of day, the net benefit of this is what is actually delivered to members’ accounts,” said Mr Bresnahan.
But recent discussion in the industry brought about by the FSI interim report has only looked at the impact of fees on the superannuation industry, he said.
“This is only half of the equation and an undue focus on fees, without regard for net benefit, does all Australians a disservice,” said Mr Bresnahan.
“Any measures to increase competition or drive down costs through efficiency would be welcomed by a majority of the industry, but not if these come at the expense of poorer overall outcomes for members,” he said.
Mr Bresnahan pointed out that the media balanced option returned 7.1 per cent per annum over the last 10 years after fees and taxes.
“This means that superannuation funds have provided members with a real return of some four per cent above inflation over this period, even after taking fees into account,” he said.
“It should be this net benefit figure, not just costs, which the FSI should focus on,” said Mr Bresnahan.
