Investment Trends' 2015 Member Sentiment and Communications Report, which is based on a survey of 16,049 super fund members, said many SMSFs are likely to underperform MySuper funds this year since their average exposure to overseas listed equities is just seven per cent of assets on average.
By comparison, MySuper funds have an average exposure to overseas listed equities of 31 per cent.
“Australian shares have provided good returns this year when dividends are taken into account, but not as well as overseas markets,” the report stated.
“Super funds with a significant allocation to unhedged overseas assets have a very strong story due to the strong growth in overseas sharemarkets and the decline in the Australian dollar. These positive returns should have a positive impact on sentiment when statements arrive,” the report said.
The cash holdings of SMSFs are also much higher – at 21 per cent – while the average cash exposure of MySuper funds is just four per cent.
The report also found that member satisfaction overall has declined in line with confidence.
“Members are asking the manager of their retirement funds to provide direction and reassurance about their individual retirement situation,” said Irene Guiamatsia, analyst at Investment Trends.
“Our research also shows that when super funds are able to engage their members’ interest, they are more satisfied and also more confident about the future, and therein lies the opportunity.”