POWERED BY MOMENTUM MEDIA
Performance the key to SMSF growth
The latest research released by Roy Morgan Research has attributed the rise and rise of self-managed superannuation funds (SMSFs) to low levels of satisfaction with other funds.
In a research analysis released today, Roy Morgan revealed that satisfaction with industry funds stood at 48.9 per cent, well ahead of satisfaction with retail funds at 42.5 per cent but well below the 64.2 per cent level of satisfaction with SMSFs.
Commenting on the research result, Roy Morgan industry communications director Norman Morris said it indicated that the major reason people were switching to SMSFs was the poor investment performance and level of fees and charges.
He said that with growing competition between the industry and retail funds for market share and the rapid expansion of the SMSF sector, satisfaction with financial performance was increasingly a factor that fund managers needed to note.
"Our research shows that there is a strong correlation between satisfaction with superannuation financial performance and the likelihood of switching funds," Morris said.
He said that the ease of switching super funds and the increase in people using SMSFs meant that the retail sector would increasingly rely on their adviser network and advice to retain customers, but at the same time be acting in the best interests of their client.
Recommended for you
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
59.27 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.01 3 y p.a(%)
Add new comment