Australia’s largest super funds could save over $500 million a year by simply avoiding uncompetitive foreign currency transaction rates, according to Mercer Investment Consulting, which is set to become the first Australian asset consultant to actively offer foreign exchange transaction audits.

Mercer Investment Consulting principal Lounarda David says funds with $300 million in international assets could make savings of 20 basis points each year – equivalent to more than $600,000 – by just monitoring foreign currency transaction rates, delivering “a much sought after tonic in a climate of negative returns”.

“It’s staggering to think super funds are paying such huge amounts unnecessarily,” he says.