Gap between industry and retail superannuation funds shrinks

The gap between industry super funds and the big six retail funds has significantly shrunk over the past year in terms of customer satisfaction, according to Roy Morgan's Superannuation Satisfaction research. 

The report found that customer satisfaction for retail funds increased by 4.3 per cent in the year to August 2011, while industry funds' rating dropped by 0.2 per cent, although they still lead the retail sector. 

BT is now in the top five brands based on satisfaction with investment performance, while MLC is seventh, suggesting the industry funds dominance may be under question in the future, according to Roy Morgan industry communications director, Norman Morris.

"It is interesting to see that the difference in satisfaction between industry and retail funds continues to narrow in line with the improved stock market performance, but more recent market volatility may change this," Morris said.

"With retail funds increasing their activity in the low-cost end of the market this may also impact satisfaction levels," he added.

BT Super has achieved the biggest increase in customer satisfaction rating in the 12 months to August 2011, with 55.3 per cent of customers saying they were fairly or very happy with the company's products - an improvement from 45.1 per cent last year. BT was closely followed by MLC, while AMP and AXA are still sitting well below the 50 per cent mark.

"The low levels of satisfaction amongst those holding their superannuation with AXA and AMP present a major problem for the market leader, but above average improvement over the last year gives some cause for optimism," Morris said.

Report shows MTAA super was deemed very or fairly satisfying by 53.7 per cent of customers, beating most of the big six retail funds (MLC, Colonial First State, AMP, AXA and Onepath).