Retail superannuation funds have lost their, recently gained, consumer satisfaction lead over industry super funds.
Roy Morgan Research has found that consumer satisfaction with the financial performance of industry super funds in November 2017 was 59.2%, compared to 57.5% for retail funds. Retail funds have lead on satisfaction since the March 2017 survey. Prior to this industry fund were ahead since the survey started in March 2003.
SMSFs remain far head of either industry or retail funds, with 71.9% satisfaction. Roy Morgan Research suggests this is a result of SMSFs operating with larger balances, with larger balances have higher satisfaction across all fund types. Industry fund have higher satisfaction for balances between $100,000 and $699,999. Only in balances under $5,000 do retail funds outperform industry funds.
“Industry funds currently have higher satisfaction levels than retail funds for all segments over $5,000 and are only narrowly behind satisfaction with SMSFs in the all important $700,000 and over segment,” said Roy Morgan’s Industry Communications Director, Norman Morris.
“With continued gains being made by SMSFs in funds under management, it is worth noting in the $100,000 to under $700,000 segment, where 62.1% of all superannuation funds are held, that industry funds lead in satisfaction over SMSFs.”
“It is important for super fund members not to be influenced by short term fluctuations in performance across funds, for what is a very long term investment. This fact is highlighted in the research which shows that of the fifteen largest funds measured for movements in satisfaction over the last year, nine showed an improvement and six showed a decline. We have seen over the years that these movements are often reversed, making the chasing of short term winners rather precarious.”