Saturday, September 14th, 2013 - Roy Morgan Research

Satisfaction with the financial performance of Retail Super Funds in November 2012 was 41.6%, the lowest level since July 2004, well behind Industry Funds (49.0%) and Self Managed Super Funds (69.1%). These are the latest findings from the November 2012 Roy Morgan Research ‘Superannuation Satisfaction’ report based on over 30,000 interviews per annum with people who have Superannuation.

The consistently below average result for Retail super funds in terms of client satisfaction with performance has been seen over the last 5 years in particular and currently lags the average by 5.0% points. As a result the sector will struggle against the increasing competition from Self Managed Super Funds and Industry Funds.

Over the last 12 months, Retail super funds have fallen further behind their competitors with a decline in satisfaction of 7.1% points, compared to 3.0% points drop for Industry funds and a 1.0% point improvement for Self Managed Funds.

Source: Roy Morgan Single Source (Australia), 6 month average to November 2012, average sample size = 15,500. Base: Australians 14+ with Work Based or Personal Superannuation.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“With the major banks all indicating that they currently plan to grow their wealth management business, the fact that their client satisfaction levels are all well below their major competitors will pose a barrier to this expansion. All of the super funds operated by the four major banks have satisfaction levels below 48% which compares unfavourably with six of the major Industry funds all scoring over 50% satisfaction.

“Our research shows that the major reason that people are switching to SMSF’s are associated with the poor investment performance and the level of fees and charges and as a result their funds are moving from Retail and a to a lesser extent Industry Funds into SMSF’s.

“Although there are various industry tables of performance and fees published it is doubtful that the majority of people holding super would be aware of or understand these. For this reason we have been measuring what people think about the financial performance of their fund because it will be this which will ultimately determine their action.

“The ease of switching super funds and the increase in people using SMSF’s means that the Retail sector will increasingly rely on their adviser network and advice to retain customers, but at the same time be acting in the best interest of their client.”

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Roy Morgan Research

Roy Morgan Research is the largest independent Australian research company, with offices in each state of Australia, as well as in New Zealand, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan Research has over 70 years’ experience in collecting objective, independent information on consumers.

In Australia, Roy Morgan Research is considered to be the authoritative source of information on financial behaviour, readership, voting intentions and consumer confidence. Roy Morgan Research is a specialist in recontact customised surveys which provide invaluable and effective qualitative and quantitative information regarding customers and target markets.
Alex Dalidakis
P: +61 3 9224 5209


Financial performance of Retail Super Funds in November 2012



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