The 2013 Roy Morgan Research Superannuation and Wealth Management Report, set to be released next week, is based on 50,000 interviews with consumers about their financial behaviour.
The overall number of superannuation products that are ‘very likely’ to switch in ‘the next 12 months’ sat at 5.1 per cent at June 2013, which is down from the peak of 6.9 per cent in the second quarter of 2008.
As at June 2013, AMP had the highest proportion of its products ‘very likely’ to switch, at 7.8 per cent.
ANZ came in second with 7.5 per cent of its members on the verge of leaving, and NAB was next with 7.2 per cent ‘very likely’ to switch over the next 12 months.
The total number of retail funds looking to switch was 6.7 per cent, representing a 37.3 per cent share of all products that are ‘very likely’ to switch.
Total industry fund members looking to switch was 4.8 per cent (representing a 44 per cent share of total ‘switchers’), while only 1.9 per cent of SMSF trustees were looking to move back to the APRA-regulated environment.
Looking back, in the 12 months between July 2012 and June 2013, 8.1 per cent of the switched products were lost by AMP.
However, AMP gained 7.6 per cent of switched products for a net loss of only 0.5 per cent.
But the biggest loser in the retail sector during the 12 months leading up to June 2013 was NAB, which saw a net loss of 3.1 per cent of total switched products.
Industry funds had a net loss of 4.9 per cent of total switched products, while 11 per cent of switched products went into SMSFs, giving the DIY sector a net gain of nine per cent.
Sixty-six per cent of those who switched superannuation funds in the 12 months to June 2013 sought advice – and 45 per cent sought advice from a financial planner or accountant.
Eighty-two per cent of those who switched to an SMSF sought advice from a financial planner or accountant.
In the 12 months to June 2013, 28 per cent of the superannuation products purchased from a major retail fund (the big four banks or AMP) came via a financial planner or accountant.
Seven per cent of people who switched to a retail product went to the financial institution directly, and 66 per cent went through an employer.
The Roy Morgan report also found that a high proportion of the superannuation products obtained were from the same group as the planner recommending them.
“Consistently over the past four years, financial planning groups have been allocating around 75 per cent of their members’ products into their own managed products,” said the report.
But the report added that many of these products were master trusts or wrap accounts, which are “likely to include funds that are managed by external managers”.
“In the 12 months to June 2013, Westpac/BT had the highest proportion of their members being directed to their own products in the latest period, with 74.2 per cent (up from 62.4 per cent 12 months ago), followed by NAB/MLC with 72.5 per cent (similar to 12 months ago with 72.4 per cent),” said the report.
“It remains to be seen whether the FOFA legislation will have any impact on these numbers, as the large licensee groups are generally restricted to recommending funds from their approved product lists,” said Roy Morgan.
