Industry superannuation funds are the winners from the choice of fund legislation, according to a report from Roy Morgan Research.
"Over the 12 months to September 2006, industry funds net share of switching was 4.5 per cent higher than any of the major retail fund managers," said the report.
Hesta was the most popular of the industry funds.
The fund recorded a net share of superannuation switching of 2.1 per cent for the 12 months to September 2006. This compares to a net share of superannuation switching of -3.6 per cent for REST Super for the same time period.
In terms of the retail sector, Commonwealth Bank and Colonial First State secured a net share of super switching of 1.5 per cent and AMP had lowest net share of switching, at -2.9 per cent, according to the report.
"The good investment performance of industry funds and the fact that they don't pay commissions to financial planners has resonated with Australians," Roy Morgan Research global finance industry director Norman Morris said.
The reasons for switching superannuation funds differed according to how much people had in their superannuation balances.
"The higher balance group - more than $100,000 - are much less likely to switch funds due to changing an employer, and far more likely to switch funds to achieve better investment performance or lower fees and charges," said the report.
The report also found this same group are more likely both to seek advice when switching - 72 per cent compared to 57 per cent - and to seek advice from a financial planner or adviser - 47 per cent compared to 28 per cent - than are those with less than $100,000 in superannuation.
The report showed that financial planning groups favoured their own products.
Customers of the major planning groups were more likely to end up purchasing a product sourced from that group. The highest level of own products was AMP planners with 84 per cent, Axa with 78 per cent and the Commonwealth Bank/Colonial First State with 76 per cent.
