A new software package that compares superannuation funds has begun to gain traction in the financial services marketplace, with the signing of its first client.
Midwinter Financial Services Reasonable Basis has agreed to supply the Meritum Financial Group with its software, which compares a client’s existing superannuation fund with the recommendations of the adviser suggesting a change of fund.
The application compares fees, insurance costs, client risk profile and their contributions to their existing fund against the same parameters of the adviser recommendations.
An accumulation project comparing the two funds is produced to show which will be the better decision for the future.
It can also compare self-managed superannuation funds against traditional funds, and includes data on all industry funds.
Midwinter head of financial planning Andrew McClelland said Reasonable Basis was complementary to existing financial planning software and was not designed to replace it.
“The software promotes a well defined, efficient and easy internal process for establishing a reasonable basis for the fund switching decision by the adviser,” he said.
Apart from helping advisers with super switching options for clients, the software can also compare the client’s current financial situation with their transition to retirement strategy.
It will also help the adviser provide post-retirement advice by showing how long their superannuation balance will last.
McClelland said work on the software started a year ago, and the company had now started actively promoting the product to dealer groups.
Meritum general manager Theo Christopoulos said the software would enable advisers in the group to show what value they are adding when talking about super switching.
“We like the ability to compare multiple funds and, on occasions, the software shows switching would not be a good move for the client,” he said.
“The software is also clear enough to show to the client, which is another positive.”
Christopoulos said the software will be rolled out to advisers over the coming months, and the dealer group has just completed a professional development day on its use.
Midwinter was initially established in Perth, but McClelland confirmed the company was moving to Sydney in the next few months.