POWERED BY MOMENTUM MEDIA
Super funds stressed over "one-way valve" to SMSFs
Both industry and retail funds are struggling with the "one-way valve" to self-managed super funds (SMSFs) which has seen 6 per cent of affluent members leave their fund for the SMSF sector and only 1 per cent come back the other way, research has found.
"Once members start an SMSF, they rarely ever go back," Uwe Helmes, senior analyst for Investment Trends said.
"However, our research also shows that the majority of members who are considering setting up an SMSF in the future say that there is something their super fund can do to prevent them leaving."
With the majority (69 per cent) of super fund members still deferring to the default option, according to Investment Trends 2013 Member Sentiment & Communications Report, it said retail and industry funds needed to own the MySuper space.
"People change super funds when they change jobs or get advice - otherwise they tend to stay put unless they're really dissatisfied," Helmes said.
BUSS(Q) members were most satisfied with their fund - with 83 per cent of members rating it either 'good' or 'very good' - due to the fund's advice services, Investment Trends said.
Most funds still have issues with engagement, however, and younger members (under 40) are a particular issue, the research found. Over one third (36 per cent) said being older, and 30 per cent said having more money, would lead to increased engagement with their super.
Other potential drivers of engagement included mobile apps (21 per cent) and website login (15 per cent). However social media usage is still low, with only 5 per cent of members following any financial services via social media.
Retail funds might have the upper hand, as 15 per cent of those surveyed said they would be more engaged if they had a login linked to their bank account. The research found OnePath and BT members were most likely to have used a mobile or tablet to access super information.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
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
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
