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.
