SMSFs Remain the Most Popular Fund Type

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Self-Managed superannuation funds (SMSFs) continue to be the most popular type of fund in terms of satisfaction with financial performance, according to the latest findings from Roy Morgan Research.

SMSFs registered a satisfaction rating of 77.3 per cent in the six months to January 2015, compared with the 59 per cent satisfaction rating scored by Industry Funds and the 56.3 per cent given to Retail funds.

“It is not difficult to see why SMSFs have been so successful in achieving such rapid growth over the last decade or more,” Roy Morgan Research Industry Communications Director Norman Morris said

“With satisfaction levels higher than Industry and Retail funds since 2002, they continue to pose a major threat to them, particularly for the higher balance members where a disproportionate level of superannuation balances are held.”

The findings, sourced from 15,084 interviews with individuals holding superannuation, revealed an overall improvement in satisfaction of superannuation financial performance, up 4.5 per cent to 58.0 per cent in the last year.

Public Sector funds saw the biggest climb, up 5.2 per cent to 67.9 per cent. Industry funds came next, up 4.6 per cent to 59.0 per cent, followed by Retail funds (up 4.3 per cent to 56.3 per cent) and SMSFs (up 4.2 per cent to 77.3 per cent).

Despite the fact other fund types saw higher climbs, SMSFs have maintained a satisfaction lead since Roy Morgan’s survey began in 2002.

Mr Morris pointed out that while SMSFs hold the overall lead, fund balances mark important points of difference when judging satisfaction.

“Satisfaction with Industry funds remains ahead of Retail funds for all balances over $5,000 and even pose a threat to SMSFs for balances over $700,000 where they are close with 79.6% compared to 82.8%,” Mr Morris said.

“The most successful major brands in the $100,000 plus market, where over 80% of balances are held, are Industry funds with most of the large Retail funds generally lagging well behind. The challenge now for the big Retail funds is how to raise the satisfaction level of the higher value customers to avoid a potential loss of funds.”

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