Super members less keen on SMSFs

super funds research and ratings SMSFs investment trends cent

26 July 2013
| By Staff |
image
image
expand image

A smaller proportion of both retail and industry super fund members intends to leave and set up a self-managed super fund (SMSF) compared to 2012, according to the Vanguard/Investment Trends 2013 SMSF Report.

The report, which surveyed 5000 super fund members across all sectors, found 2 per cent of retail and a little more than 1 per cent of industry fund members intended to set up an SMSF, which is about one percentile lower than 2012.

The main reason for this decline is better performance of super funds over the last 12 months, according to Investment Trends senior analyst Recep Peker.

"If you look at why people have set up SMSFs, one of the main reasons seems to be that they're disgruntled at the poor performance of their fund," Peker said.

"Every time there are prolonged periods of poor or under-performance, the intention to set up an SMSF increases. But because super funds have been performing better over the last 12 months, this intention has gone down."

But even among those who are leaving, 80 per cent say there are things their super funds can do to prevent them from leaving and setting up an SMSF, such as reducing fees and increasing transparency.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

22 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

5 days 3 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 5 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

4 days 1 hour ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 days 4 hours ago