Corporate super funds still strong
Corporate super funds are maintaining market share despite dire pre-dictions from some elements in the financial services industry.
Recent figures released by Association of Superannuation Funds of Australia (ASFA). defy predictions by industry pundits who claim the heyday of corporate super is over.
Corporate super funds are maintaining market share despite dire pre-dictions from some elements in the financial services industry.
Recent figures released by Association of Superannuation Funds of Australia (ASFA). defy predictions by industry pundits who claim the heyday of corporate super is over.
From June 1995 to December 1998, corporate super funds lost only 4 per cent of their share of the superannuation market, falling from 25 to 21 per cent and just over a 1 per cent drop in market share of the number of accounts from to 7.5 per cent.
ASFA principal researcher Ross Clare says the minor falling away of business occurred in those funds primarily at the small end of town, often with low levels of activity and membership.
The larger corporate funds account for 30 per cent of total corporate fund assets and are well established, professionally run and main-tained for strategic purposes.
"In the top 40 to 1000 funds there is a degree of stickiness. Large corporate funds have a management structure in place, are process driven and as a result return better deals for members," Clare says.
Retail and industry funds have stealing corporate super's market share difficult, with the funds most at risk at the lower end of the spectrum.
Smaller funds number 1200 but only represent 0.01 per cent of the to-tal market with the effort required to gain this business widely re-garded as outweighing the benefits.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
