According to IQ Group chief executive Graham Sammells, superannuation funds should conduct thorough research on their member bases before they add a 'member direct' option.
"A [member direct option] may be simply a 'bolt-on' strategy and expensive overhead, distracting resources from more significant issues that need addressing," he said.
It might turn out that other actions could be taken by the fund to better retain members. For example, improving relationships with employers can "potentially improve member churn issues and be a higher source of revenue", Mr Sammells said.
If the fund does decide to go ahead with a member direct option, however, it must be tailored to accommodate both accumulation and pension-phase members, he said.
"[Member direct investment option] product design is sensitive to solution design. Product, solution and implementation needs to be one streamlined process in order for a fund to avoid a 'bolt-on' product that costs more to operate than it returns," Mr Sammells said.
Co-operation across the various divisions within the fund, as well as with any external providers, is also vital to the delivery of the member direct option, he added.
