Superannuation funds suffering from a leakage of assets under management to self-managed super funds (SMSF) could win the funds back by playing on the considerable effort associated with the establishment and compliance of an SMSF, according to research firm CoreData.
In a recent report, titled "Building a Nest Egg 2012", the research firm said the vast majority of SMSF trustees found the operation of a fund "a hassle".
"Of the respondents who have an SMSF, three in five (62.3 per cent) are finding compliance of the fund a considerable hassle, while 23.3 per cent find it some hassle," the research found.
"There may be an opportunity for super funds to win back those who have left for the SMSF sector, or to market to those 'at risk' of setting up an SMSF, by advocating the hassle-free nature of the APRA (Australian Prudential Regulation Authority) funds."
Super funds that offered a direct investing option might be especially well placed to target that group, the firm said.
Post-retirees are much more likely to find compliance a considerable hassle than pre-retirees, but it is post-retirees who are drawn by the funds.
"The leakage to SMSFs is evident with one in five post-retirees having an SMSF (21.5 per cent) compared to only 15.5 per cent of pre-retirees," CoreData said.
More control over investments was the biggest reason for establishing an SMSF, followed by people wanting more control over their future, and then being advised by their financial planner to set up a fund, the report said.
Interestingly, industry funds are perceived to offer the best option for members in retirement by both pre- and post-retirees - despite the fact many use SMSFs.
Members scored industry funds 8.1 on a scale of 1 to 10, while SMSFs received a score of 6.2.
