Choice results for industry funds

Industry superannuation funds have emerged as the initial winners in the early stages of Australia’s new choice of super fund environment, according to a survey conducted by Roy Morgan Research.

The survey, covering the first three months of the choice environment found that while the industry funds had emerged as winners, large retail funds and, particularly, AMP had emerged as the most immediate losers.

However, the good news for the major superannuation funds is that the rate of churn generated by choice of fund has been much lower than was originally expected, with the Morgan survey noting that switching of super fund managers may have increased slightly in the first few months of choice but is still an activity for only a small minority of account holders.

“Only 6 per cent of people holding work-based or personal superannuation have switched their fund manager in the last 12 months and most of this activity, particularly among younger age groups, is associated with switching employer,” the Morgan research said.

It said there were three distinct groups making up superannuation switchers — those mainly young people who are frequently switching employment, those looking to consolidate their superannuation accounts and those older fund members who were looking for enhanced performance.