Super industry sees member engagement as key
Leaders in the super industry list better engagement between funds and fund members, operational efficiency and post-retirement products as their top three priorities for the next three years.
That was the main finding from the recent Association of Superannuation Funds of Australia (ASFA) and PwC CEO survey.
ASFA CEO Pauline Vamos said fund CEOs have prioritised improvements to member engagement as their top priority after a year of complex new regulatory and compliance requirements.
The survey also found funds want to build on the increase in member satisfaction that has occurred due to strong investment returns in 2012-13 by keeping investment management fees down.
“The other interesting finding was that around 75 per cent of respondents do not intend to insource their investment management over the next three years,” Vamos said.
“The main reasons cited for this were cost, scale and risk appetite. This finding will be surprising to many people as it goes against the trend we have seen in recent years. It shows funds understand that insourcing funds management involves a very different risk profile and needs careful consideration.”
Industry leaders have also prioritised operational matters. PwC’s David Coogan said CEOs feel confident about complying with the Stronger Super regulations, with the majority of the respondents saying they had adapted to the new regulations in their business.
“Costs are expected to continue to increase slightly in the next three years as the costs of technology, member engagement and increased regulatory compliance outweigh any savings that may have been realised from the introduction of MySuper and SuperStream,” Coogan said.
Recommended for you
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
