Industry funds get high balance imprimatur
New research appears to defy the convention that people with high account balances are more likely to be happiest in self-managed superannuation funds (SMSFs) or retail funds.
Instead, the research released today by Roy Morgan Research, has identified high account balance holders as more likely to be happy with an industry fund or an SMSF.
The Roy Morgan research, conducted in April, found that industry superannuation funds continued to out-do retail funds for satisfaction with financial performance, with a 60.6 per cent score in the six months to April, compared to 56.9 per cent for retail funds.
The research found that industry funds increased their satisfaction level over the last 12 months by 1.5 per cent points, while retail funds showed a small decline of 0.1 per cent.
Commenting on the results of the research, Roy Morgan Research industry communications director, Norman Morris said industry funds had now had higher satisfaction than retail funds every month since the survey had begun in 2002.
"Our research shows that industry funds are viewed much more favourably by their members than retail funds when it comes to their performance. Of particular significance is the fact that industry funds have higher satisfaction at all balance levels and in fact they peak at the $700,000 plus level where their satisfaction level is 84 per cent — six points higher than retail funds," he said.
"This segment is the primary group facing potential losses to SMSFs, making it imperative that both industry and retail funds maintain a strong connection and performance with them if they are to avoid losses," Morris said.
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