Super members want direct investment options

Superannuation members are becoming increasingly interested in investing directly in Australian shares and term deposits through their super fund, CoreData has found.

CoreData head of advice, wealth and super, Kristen Turnbull said the economic climate was driving members to want more control, flexibility and protection of their super assets. She said while self-managed super fund trustees had taken the initiative, direct investing was gaining traction among other super members. 

"I think it's becoming more appealing to your mums and dads investors and your broader super fund members to actually have the flexibility to be able to invest directly," she said.

CoreData's Direct Investing report found 48.7 per cent of respondents would be interested in investing in specific Australian shares and 47.3 per cent in terms deposits through their superannuation fund. A further 26.6 per cent would be interested in investing directly in pension annuities.

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But CoreData found that 64.7 per cent of respondents shied away from professional advice on direct investing because they felt advisers' value propositions were unclear.

Trust was another barrier to investors seeking advice, it said.

There was a strong interest among respondents for scaled advice, with 56.9 per cent wanting advice catered to their limited advice needs.

Respondents were more likely to seek scaled advice through an adviser rather than their super fund, although that may change in the future, Turnbull said. 

"If scaled advice does take off, we are likely to see it provided by different channels such as websites and online and telephone and those sorts of things, and as that becomes more common I think people will think of those as potential options as well, but at the moment it is financial advisers that are the dominant channel," she said.