Saturday, September 14th, 2013

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.”

Contact Profile

Roy Morgan Research

Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332


Financial performance of Retail Super Funds in November 2012



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