Investors unlikely to jump ship
Australian investors are unlikely to jump ship and switch to another super fund despite poor sentiment and low returns, according to a survey from CoreData.
With super fund statements for the financial year 2011-12 due out shortly, CoreData found one third of respondents expected lower returns than last year, while more than half thought the returns would be the same as the previous financial year.
However, many investors could be in for a shock, with the average expected positive return being 7.7 per cent - well above what they are likely to receive, according to CoreData.
But the majority of respondents (57 per cent) say they are unlikely to switch to another super fund if their fund does not meet their return expectations.
"People need to remember that superannuation is a long-term investment that is subject to short-term fluctuations," said Kristen Turnbull, CoreData's head of advice, wealth and super.
"It is encouraging that the majority of respondents are not likely to switch funds if their return for FY2011-12 does not meet their expectations, however, this is arguably due to apathy on the part of many Australians when it comes to their super," she said.
The survey (which had 470 online respondents) also found that men were more optimistic about their returns than women.
Looking forward, however, there is an indication of a more positive sentiment, with most relying on global economic recovery.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
