Industry super performance moves members: Research

Industry superannuation funds continue to impress members more than retail counterparts when it comes to financial performance.

Latest figures from researcher Roy Morgan show industry super funds continue to skip ahead of retail funds in terms of member satisfaction, with a 4.8 percentage point lead established over member's satisfaction with financial performance.

At this time 12 months ago the lead was far smaller, with 1.6 percentage points between the two. However the retail super sector has since been publicly lambasted at the Royal Commission, while industry funds experienced smoother waters.

According to the researcher, eight of the top 10 performing retail and industry funds - when measured on the satisfaction of members with their financial performance - were industry super funds. Catholic Super scored the highest, with UniSuper close by.

The two retail funds to make the cut were Macquarie and Colonial First State. Other retail funds AMP, Suncorp and MLC were recognised by the researcher as the major super funds with the lowest satisfaction beyond the top 10.

Despite KPMG's recent assertion that the Productivity Commission's proposed best-in-show list would not be adopted, Roy Morgan industry communications director Norman Morris said it is more likely members want a simplified superannuation system, and thus member satisfaction with financial performance should form one of the metrics determining any potential best-in-show list.

"An important consideration in determining which superannuation funds will be in the top 10 as proposed by the Productivity Commission, is that with market fluctuations they are subject to regular changes or re-ranking," Morris said.

"As superannuation is a very long term process, it is likely that over a number of decades there will be a large number of ranking changes. This will increase uncertainty and confusion in member choice in an industry that already lacks member engagement.

"This research shows that fund member ratings should be taken into account as input in determining the top 10, as they have the final decision on choice of fund."

Read more: ResearchProductivity CommissionRoy MorganCatholic SuperColonial First StateKPMGMacquarieMLCRoyal CommissionSuncorp
Link to something 06bpsYab