Oh, and thanks for the link to the report, quite interesting.
I don't think you can make a valid comparison on fees though. Let me explain:
The report says average costs of 0.69% pa. This would be based on reported fees paid by the fund for admin (including a wrap platform if used), accounting (I assume although whenever I've looked at a SMSF return these aren't included), Audit, property maintenance costs, Ongoing investment Advice etc and excludes set-up costs as these are paid by the member.
I expect this would not include property purchase / stampduty costs, share brokerage costs and the MER on any managed funds or cash accounts if used etc. These are either capital costs or part of the net return, not annual fees reported. NOr is a cost recorded for the Trustees time, resources etc used up, which has a value.
Now this part is important: In a public offer fund the total fees or ICR quoted may include all admin, accounting, research, software, letters, computer systems, audit, printing, call-centres, advertising, profits, football team sponsorships etc(for IF's), brokerage on share trades etc. etc. And yes, not all of these give value to the members but also are spread across big and small accounts. Essentially, they are measuring quite different things and can't be compared in a meaningful way.
Don't get me wrong, I'm not against SMSF's, rather for them. I'm also for informed debate and opinions. and just giving MHO.
