Investors turn to superannuation funds for help

Investors are turning to their super funds for help and direction as a third successive year of volatility and poor returns hits their livelihoods, with retirees being hit the hardest.

That is one of the main conclusions drawn from the Investment Trends 2011 Investor Sentiment and Communications Report, which also found investors' levels of satisfaction with their super funds have started to improve.

Investment Trends principal Mark Johnston said super fund and fund managers had dramatically raised their game over the past four years in keeping members informed about their investments, but added this would no longer be enough.

Johnston said super fund members now want their respective funds to provide them with guidance on future steps, which would require "a combination of good information integrated with effective advice offerings".

"We think that over the next 12 months real differences will emerge between the providers who deliver supportive and cost-effective advice framework to help their members through this tough time and the funds who leave members on their own to work it out for themselves," Johnston said.

Retirees - particularly those with large investment portfolios but lower incomes - are most concerned about the market volatility, according to the report, which surveyed 9,000 Australian investors in May and June 2011.