Super switchers bypass planners
By Ross Kelly
In further proof that choice of fund was no more than a flash in the pan for advisers, a new survey has found just a third of the few people who switched funds and sought advice consulted a financial planner.
The data, compiled by Roy Morgan Research and based on the responses of nearly 9,000 people, also showed that most switchers who asked for help went to their employer, while 7 per cent switched funds on advice from their accountant.
Overall, only 6 per cent of respondents decided to change funds in the period from July 1 to September 30, 2005.
The results of the survey follow the release of research by Dexx&r reported in Money Management last October that showed most advisers had only seen a handful of members move out of employer super funds.
According to the Roy Morgan report, industry funds received the most net inflows from those who decided to switch, while master trusts received the least.
“Investment performance plays a key role in decisions to switch super fund provider and the industry funds seemed to have gained a strong position combined with lower fees,” said Roy Morgan account director Morris Logan.
The report also concluded that the major banks have failed to capitalise on the opportunity offered to them by choice to cross-sell their own products.
“Banks obviously have a large potential for cross-selling amongst their customer bases into super, but the challenge is how to convert that into reality, and it seems to be particularly in the context that they’re competing with super specialists like the industry funds,” said Logan.
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