Which super funds leave members most satisfied?

Industry super fund members report being more satisfied than retail customers.

Which super funds satisfy most?

Industry super fund members with balances over $5000 had higher levels of satisfaction with their fund’s performance compared to those with retail and self-managed funds (SMSFs), according to the latest Roy Morgan findings.

Even among members with balances of $700,000 or more industry super funds are well ahead with a satisfaction level of 87.5 per cent, compared to only 77.9 per cent for retail funds and 82.7 per cent for SMSFs. 

Roy Morgan’s ‘Satisfaction with Financial Performance of Superannuation in Australia Report June 2018’ is based on in-depth interviews conducted face-to-face with owners of superannuation funds.

Over the last 12 months, industry funds showed gains in satisfaction across all balance segments, with the best performance being a gain of 9.5 per cent in the over $700k group, followed by 5.0 per cent gains in the $250k to $699k segment and a 4.4 per cent increase in the $100k to $249k segment.

Self-managed funds had losses in satisfaction in all of these important groups, with the greatest decline being 18.3 per cent in the $100k to $249k bracket.

The biggest increase for retail funds was 10.9 per cent in the under $5000 segment and 1.6 per cent in the $700k and over segment, with the other segments showing losses.

Although retail funds have the highest satisfaction among the low balance members, the significance of this needs to be measured against the funds held in this segment. The accounts holding under $5000 represent only 0.1 per cent of the total market value of all superannuation funds. 

By contrast, at the other end of the market, in the $250k plus balance segment, there are only 20.6 per cent of fund members but they hold nearly two thirds (64.4 per cent) of the total market value.

Norman Morris from Roy Morgan Research says the satisfaction findings largely reflect the market performance of the various superannuation funds.

“The superannuation sector is currently receiving a great deal of adverse publicity in the finance Royal Commission, particularly in relation to fees, advice, minimum balances for self-managed super, industry funds etc,” Mr Morris said.

“The extensive publicity given recently to the end of financial year performance for individual superannuation funds, has generally shown that industry funds have been the best performers. This is in line with the satisfaction data.

“Superannuation satisfaction is a vital part of understanding the behaviour of members as it is unlikely that the vast majority will be actively engaged enough to be reading performance tables. It is more likely that it is how they feel regarding the performance of their fund that will ultimately determine their actions.”

Are you satisfied with your super fund?

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    COMMENTS

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    MICK
    1st Aug 2018
    2:31pm
    This is a no brainer Ben. Of course industry funds are better than retail funds. Only the government funded trolls would say otherwise.
    Mike Omment
    1st Aug 2018
    2:55pm
    I want to become a government funded troll. What do I have to do?
    MICK
    1st Aug 2018
    4:23pm
    Join the Liberal Party. If you are an ex LNP MP you are automatically in.
    Then apply to post political lies for the Party and you will be paid. They call this 'Services to the Liberal Party'.
    The practise should be looked into by the ICAC...oh, but we do not YET have a federal ICAC do we? That is coming when Labor gets into office.
    Look out Mike. You will have nowhere to hide then. no matter what names you post under.
    strikey
    1st Aug 2018
    5:49pm
    @Mick

    You also write for The Betoota Advocate too... right?

    1st Aug 2018
    3:02pm
    Very satisfied with my retail fund
    Never below 17% p.a. return in the last 5 years
    Industry funds just don't have the niche products that some retail funds have to offer
    MICK
    1st Aug 2018
    4:18pm
    Which fund? NO retail fund has a record of returning more than 17% let alone on a continuing basis.
    I await the information.
    Anonymous
    1st Aug 2018
    4:24pm
    Mix of Acadian Global Geared and other and a couple of other products

    Super is withColonial First
    MICK
    1st Aug 2018
    4:55pm
    Not bad olbaid. I am surprised as retail funds are never at the top of the list.
    My only observations are:

    https://www.investsmart.com.au/managed-funds/fund/cfs-fc-w-psup-acadian-w-geared-global-eq/15015

    1. 10 year return was 10.2% which is fair
    2. the fund borrows money to leverage into investments. Leverage means BETTING!

    My concern about this fund is that it looks like it is borrowing to bet on the markets rather than investing in them so you risk losing 100% of capital rather than only a portion.
    You are looking good over the last 5 years but as we all know going to the track eventually ends badly. Having said that good luck and I hope the run lasts. Maybe remember that the markets are beginning to look expensive so who knows. Certainly not me.
    MICK
    1st Aug 2018
    5:05pm
    Other thing is THIS IS A WHOLESALE FUND. My understanding was that you or I could not access a wholesale fund????? A bit like going to the Cadburys factory and wanting to buy chocolate at wholesale prices. Not possible.
    Greg
    1st Aug 2018
    11:23pm
    Mick - Wholesale fund? My super's in one with Colonial, it only had a balance requirement at the time, around 7 years ago $250000 I think. It's just a name, doesn't mean much.
    cupoftea
    1st Aug 2018
    3:02pm
    You are so right Mick the RC starts this Monday on super you wait and see what this LNP has worked they will try any thing to get there Banker mates on the board of industry fund they want our money
    MICK
    1st Aug 2018
    4:20pm
    They have been at it for a few years now and have been trying to sell the 'union overview bad' lie. The facts are always on the figures and Industry Funds have been in a class of their own for over a decade. So what harm are these bad unions doing????? Exactly.
    floss
    1st Aug 2018
    3:02pm
    Mike Omment ask O.G.
    Mike Omment
    1st Aug 2018
    3:07pm
    I thought Mick might know
    strikey
    1st Aug 2018
    5:52pm
    Getting tired of these dead-end headlines here........ "Which super funds leave members most satisfied?"

    Read the story and no answer is given. Pathetic journalism.
    MD
    1st Aug 2018
    8:21pm
    Maybe we're supposed to follow the 'Ray Morgan" link strikey, your guess is as good as mine in that respect. Nevertheless it's still a rehash of a re-run - might be a few of the YLC team on annuals.

    Fund wise, we're happy as pig's in mud - as long as they show a return. Costs still remain proportionately high relative to returns and in keeping with most institutionalized entities (fund managers) are loathe to give anymore than that which is necessary to appease the masses.

    The Super funds (as do - banks, insurance Co's, utilities) know most folk aren't motivated enough to 'compare' so they trade on that human failing and exploit it to the max...to their benefit.

    Win lose or draw that which we earn, for most of us, ultimately ends up in someone else's pocket so directly/indirectly we're carrying one another. Just that at times we get the feeling there's too many on our shoulders and wonder how many our old back can carry...and I haven't mentioned the pollies!
    Mike Omment
    1st Aug 2018
    9:03pm
    thankyou for the threat Mick


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