Industry superannuation fund members with balances of more than $250,000 are more satisfied with their funds’ performance then those who invested with retail funds, a survey reveals.
The Roy Morgan Research Satisfaction with Financial Performance of Superannuation – Industry Funds vs Retail Funds survey found that high value super members accounted for more than 50 per cent of funds held in superannuation, but less than 15 per cent of customers.
The research found that those with more than $700,000 in super were the most satisfied with their funds’ performance, with 84.4 per cent of those in industry funds reportedly ‘fairly’ or ‘very’ satisfied, compared to 76 per cent of retail fund members – a gap of 8.4 per cent.
While there was an 8.5 per cent gap in satisfaction between industry (73.6 per cent) and retail (65.1 per cent) fund members with between $250,000 and $699,999 in their accounts, the survey revealed.
“It is worth noting that these high levels of satisfaction can be compared very favourably with self-managed funds where the satisfaction level is 79.2 per cent,” the researchers said.
Roy Morgan Research, industry communications director, Norman Morris, said that poor investment performance and associated issues relating to fees and charges were important motivators in switching superannuation providers, highlighting the importance of ensure high value members are satisfied.
“Our research shows that at this stage, industry funds are viewed much more favourably in terms of performance by their members than are clients of the retail funds,” he said.
“Of particular significance is the fact that industry funds have their biggest lead in satisfaction at the top end of the market where members hold more than $250,000 and who account for just over half of funds in superannuation.
“It is this top segment that is the primary group facing significant losses to self-managed superannuation funds, making it imperative that both industry and retail funds maintain a strong connection with them if they are to avoid losses.”