Industry funds catching up to SMSFs on satisfaction
One research house has claimed satisfaction with financial performance for industry fund members with balances over $250,000 is higher than for SMSFs in this category.
A survey conducted by Roy Morgan Research consisting of 15,932 interviews in the six months to December 2014 found the level of satisfaction with financial performance for industry funds with balances above $250,000 was 80.4 per cent, while it was only 78.4 per cent for SMSFs in the same category.
Industry funds with balances above $250,000 first overtook SMSFs for satisfaction in the same category in November last year when SMSFs were rated 80.5 per cent for satisfaction while industry funds scored 81.3 per cent.
Roy Morgan Research industry communications director Norman Morris told SMSF Adviser the drop for SMSF satisfaction in the last two months of 2014 could be due to the fact SMSFs are more involved in the share market and pay closer attention to fluctuations.
“The share market dived a bit at the end of last year, so I expect SMSF satisfaction in terms of financial performance will increase again in January and February,” said Mr Morris.
“SMSFs also hold about a third of their assets in cash so deposit rates going down hasn’t helped returns either."
The results showed SMSFs still scored the highest satisfaction for financial performance overall, however, with a rating of 76.6 per cent, compared to 59.2 per cent for industry funds and 56.5 per cent for retail funds.
Mr Morris argued the main reason behind the overall higher satisfaction for SMSFs was that “satisfaction rises with the amount held in super”.
“The logical extension of that is because SMSF balances are averaging about $1 million, satisfaction is higher,” said Mr Morris.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.