POWERED BY MOMENTUM MEDIA
Information overload repels fund members
An onslaught of information could well mean superannuation fund members are going to ignore what is on a super fund website, a chief behavioural economist said.
University of California professor Shlomo Benartzi told the 2014 ASFA Conference in Melbourne that super funds should think of themselves as digital fiduciaries in the digital technology era.
But he stressed that if members visit super fund websites, funds have to assume that they are not going to pay much attention.
"They're also not going to think about things as seriously as you think they should. The wealth of information creates scarcity of whatever information consumed," Benartzi said.
Super fund website effectiveness hinges on whether members trust that website, followed by its visual attractiveness and user friendliness.
Benartzi wondered if super funds should build an application that allows members to take actions on an iPhone when the market fluctuates, like making portfolio structure changes and buying annuities.
But Benartzi argued none of this will bare fruit unless super fund websites personalise their features and reports to suit their particular members, and then test the site to make sure it meets members' needs.
"Members judge websites in 50 milliseconds so when people come to your site, you're not given a second chance. You're not even given a first chance."
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
