Club Plus Super 's recently established financial planning arm will expand its team by two as the business gains traction.
Club Plus Super Financial Planning, which opened for business in October last year, has appointed an additional financial planner and an assistant planner, who will start this month.
According to Club Plus, offering financial planning services to members has seen many members accessing the service and rolling over substantial balances into their account, thereby boosting funds under management, which currently stand at about $1.3 billion.
"It has been a revelation in terms of what we could do for members and for the fund," Club Plus chief executive Paul Cahill said.
"We just wanted to replace the existing service provider, but it is turning out to be quite a scaleable business," Cahill said.
In addition, a number of members have also brought their families into the fund, a move made possible after Club Plus became a public offer fund last September.
"About 80 per cent of people I have spoken to have so much extra money or bring in a family member," Club Plus financial planner Tracey McDonald, who established the planning arm, said.
On a number of occasions, members called with questions about an account with less than $50,000 in it and ended up rolling more than $600,000 into the fund, she said.
Cahill estimates that the planning business has been involved in $10 million worth of transactions since it was established four months ago, including rollovers, salary sacrifice and transition-to-retirement procedures.
"We produce about 15 SOAs (statements of advice) a week, but the number of calls with members would be two or three times that," McDonald said
Club Plus previously made use of external financial planning providers - including financial planning firm Money Solutions, which is owned by superannuation administrator AAS - but the approach of the external providers did not fit in with the super fund's goals.
"Historically, there was no face-to-face contact; SOAs were posted to members," McDonald said.
"Besides, the mentality of the external planners was focused on selling product, rather than finding the best solution for members.
"We do this as a member service, and if we cover our costs it is enough," Cahill added.
Club Plus is working with Mercer to develop a shorter version of its SOA, which will be between 16 and 20 pages.
"Some planners think that a thick SOA is worth more, but the reality is that members don't go through them," she said.
The establishment of the financial planning business is part of a larger program of bringing essential functions in-house.
"Three and a half years ago this fund had no staff. It was run by a board and a number of services providers. We are now seeing the light at the end of the tunnel and coming out with some speed," Cahill said.
The last major change is the transition to a new shared services call centre, which will take effect next month.
This will enable the fund to interact more effectively with its members.
