Speaking to InvestorDaily, EquipSuper executive officer, strategic marketing and communications, Geoff Brooks, said that trust is “by definition” the key factor of superannuation and that smaller funds have an opportunity to better cultivate a client relationship.
“If it was simply a matter of buying the product and then basically not having any contact with the fund for 40 years, then the product alone would define the relationship,” Mr Brooks said.
“But people do want to stay in touch, and they want good quality communications about how their money’s going.
“Industry funds have a got a good connection into the employer’s shop floor level and that’s where the difference is.”
Mr Brooks said that cultivating a relationship beyond investment return numbers would help funds repair the reputation damage done by the global financial crisis.
“People are entrusting you with their lifetime savings,” he said. “Whether it’s folklore or fact is open to question, but for most people, superannuation is the second biggest asset outside of their family home.
“So there has to be, by definition, a high level of trust in the people that you’re putting that money with.”
In its 2013 annual member survey, Equip found that trust in the group's advice has been higher than prior to the global financial crisis, within three in four members saying they would be likely to recommend the fund to a friend.
While Mr Brooks said the recovery in investment returns within the super industry has helped, the boost has been a result of Equip’s investment in its service proposition.
Making member experience activity a central service has been an important part of this development, providing targeted and segmented communications to members and investment in data analytics.
“But the bigger thing for us has been how we’ve changed the business… the bottom line is really that we’re starting to deliver the messages that are far more relevant and personal to people than we have been able to in the past,” Mr Brooks said.
