Wednesday, November 11, 2009

Member research - Super? What super? ASFA Day 1

On an individual member level, ASFA research conducted by Auspoll shows what superannuation members really think about it all. And the short answer is they don't really think.

At least they don't think much about their super.

When asked which superannuation issues caught their attention recently, the largest portion of respondents (47 per cent) could not think of any - and answered "none".  Only some (29 per cent) offered losses or a decrease in the value of their investment, and a very small number (6 per cent) suggested fees.

Have people changed their investment options in response to market movements?  Most (87 per cent) have not.

Which are the two most widely-held funds?  Australian Super and AMP, by a considerable margin.

In terms of split between industry and retail, the survey found some 48 per cent were in industry funds, 29 per cent in retail and a far smaller proportion (3 per cent in each) were invested in a corporate or self-managed fund.

It seems members, in the wake of one of the worst years on record for returns, are largely satisfied (79 per cent of respondent) with their super funds - consistent with past findings.

Interestingly, those in the public sector and industry funds show far stronger satisfaction ratings than retail fund members.

Of the small number not happy, why is that?  Most said it was about performance and / or fees. 

For those who are happy with their fund, it's down to low or reasonable fees, performance and communication.

And finally, what do members looks for in a fund?  Performance, reasonable fees, safety or security, and consistency and stability.

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