SMSF growth driven by investor satisfaction

The relative level of satisfaction with self managed super fund (SMSF) performance is a likely drive up for SMSF’s continued growth and significant market share, according to Roy Morgan Research.

Roy Morgan’s findings are based on a survey of 15,084 superannuation holders conducted in the half year to January 2015.

Satisfaction with super performance was measured across retail, industry and self managed funds. SMSF’s scored the highest with a satisfaction rating of 77.3%; industry and retail funds scored 59% and 56.3% respectively.

Overall satisfaction has increased by 4.5% to 58%.

Although the report notes that performance satisfaction generally increases with balance, SMSF’s steel have the highest satisfaction rating for all balances over $5000 in fact, at balances over $700,000, SMSF’s lead on industry and retail funds narrows to 3.2% and 6.3% respectively.

“It is not difficult to see why SMSF’s have been so successful in achieving such rapid growth over the last decade or more,” said Roy Morgan Research industry Communications Dir Norman Morris.

“With satisfaction levels higher than Industry and Retail funds since 2002, they continue to pose a major threat to them, particularly for the higher balance members where a disproportionate level of superannuation balances are held.”

— Alex Burke via the FINANCIAL STANDARD