While the super industry took a hit during the GFC, with widespread losses damaging its reputation, sustained growth over the past four years has improved clients’ views of superannuation.
However, speaking to InvestorWeekly, Equip chief executive Geoff Brooks said the industry needs to build a client relationship that goes deeper than investment results if they are to rebuild trust in the industry.
“There is no doubt that trust in financial services organisations and institutions dropped considerably during the GFC,” Mr Brooks said. “People are entrusting you with their lifetime savings. Whether it’s folklore or fact is open to question, but for most people, superannuation is the second biggest asset outside of their family home.”
“So there has to be, by definition, a high level of trust in the people that you’re putting that money with.”
In its 2013 annual member survey, Equip found that the level of trust in its advice has been higher than levels achieved prior to the GFC, with three out of four members saying they would be likely to recommend the fund to a friend.
Mr Brooks said there are three key concerns that clients have when it comes to their super funds: “One, that they’re going to invest it sensibly and responsibly,” he said. “Two, that the fund is going to have appropriate risk management measures in place; and three, that the business or the fund is going to be there to pay the benefits when you exit the workforce and start drawing the benefits from it.”
