Industry fund members most satisfied: Roy Morgan
Industry superannuation fund members are the most satisfied across a range of balances, including those balances that account for the biggest share of the super market, Roy Morgan’s latest research has shown.
The research house found that in the six months to June’s end, industry super fund members with balances over $5,000 had higher levels of satisfaction with their fund’s performance than retail fund or self-managed super fund (SMSF) members.
Source: Roy Morgan
Industry funds also showed gains in all balance segments across that time, gaining 9.5 percentage points in the over $700,000 group, five points in the $250,000 to $699,999 segment, and 4.4 points for members with $100,000 to $249,000.
Retail funds had the highest satisfaction only among members with balances under $5,000, with 60.1 per cent, which was a 10.9 percentage point gain on Roy Morgan’s previous survey. They also gained 1.6 points in the over $700,000 category but recorded losses in all other segments.
Roy Morgan warned that the worth of these increases in terms of market value needed to be considered against the heavy skew in the super market toward balances of $250,000 plus.
While retail funds performed well for the lowest balance holders, these accounts only represented 0.1 per cent of the total super market value. Funds worth over $250,000 accounted for 64.4 per cent of the total market in contrast, despite just 20.6 per cent of members belonging to this segment.
As such, Roya Morgan said that improving satisfaction scores among high balance customers offered much greater growth potential.
SMSFs experienced losses across each segment, with the greatest being a huge 18.3 percentage points for members with balances from $100,000 to $249,999.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
