New insights on scale in super
August, 2012
Much of the analysis on scale in super has focused on what could or should happen as the industry consolidates and funds get bigger. We wanted to find out whether scale had delivered lower costs to members. We found that scale matters and more specifically it is membership that gives a significant scale benefit in terms of trustee office costs; however, demographics also matter – the cost of serving members with high average account balances can offset the benefits of scale in terms of trustee office costs.