New insights on scale in super
Much of the analysis on scale in super has focused on what could or should happen as the industry consolidates and funds grow larger. We wanted to find out whether scale has actually delivered lower costs to super members. Our findings show that scale does matter—specifically, that membership size provides a significant benefit in reducing trustee office costs. However, demographics also play a key role: the cost of serving members with high average account balances can offset some of the scale benefits in trustee operations.
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