Industry superannuation funds continue to achieve higher customer satisfaction with financial performance compared to retail funds.
In a recent survey by Australian research company Roy Morgan Research, satisfaction rates for industry funds in December 2014 were 59.2 per cent, compared to 56.5 per cent for retail funds.
“The lead in satisfaction for industry funds has varied considerably since 2002 but they have always remained ahead of retail funds,” said Roy Morgan Research.
“At the top end of the balance range (ie. $250K+), industry funds have a satisfaction level of 80.4 per cent, well ahead of retail funds with 73.2 per cent.
“Although this segment accounts for only around 10 per cent of customers, they hold approximately 43 per cent of total superannuation funds,” the survey found.
Roy Morgan Research industry communications director Norman Morris said, “The challenge now for the big retail funds is how to raise the satisfaction level of their higher-value customers to avoid loss of funds.”
The top five funds for financial satisfaction were ESSSuper scoring 81.3 per cent, followed by Catholic Super (72.7 per cent), HESTA (65.4 per cent), Cbus (64.1 per cent) and Health Super (63.5 per cent).
Lower satisfaction rates for retail funds can be attributed to their sensitivity to stock market fluctuations, said Roy Morgan Research.
“Many have accredited the decline, which was greater than for industry funds, to differences in investment allocations,” said the research company.
“With intense competition and controversial issues surrounding retail super funds and industry funds, it is important to [consider] what the fund members think regarding the financial performance of the two groups.
“It is ultimately the members that will decide where their funds will be directed,” said Mr Morris.
The survey interviewed 15,932 superannuation holders in the six months to December 2014.