Perth-based financial services firm Addwealth has launched a superannuation fund aimed at providing a point of difference for advisers and their clients through the variety of insurance options it will have on offer.
In particular, the Addwealth Advantage Super Fund is looking to give financial planners a retirement savings product that will deliver strong returns without making advisers compromise on the risk products they can offer their clients.
“Most superannuation funds have only one insurance option and some now have a couple. The difference with the Addwealth Advantage Superannuation Fund is that it will have the facility for members to access all risk products that are available in Australia, which is a big differentiator,” Addwealth chief executive Paul Foster said.
“The benefits to members from that is they will get the right insurance but still have good superannuation outcomes. For advisers it will mean efficiency, which is critical, and also piece of mind,” he explained.
From an investment perspective, one of the advantages of the new fund is it will allow individuals access to Addwealth’s Achiever fund without having to satisfy the usual minimum investment amount of $50,000.
According to Foster, a person can invest in the new superannuation fund with a balance as low as $1500.
“It is available at very low levels but is still suitable for those people with larger balances. Our business typically looks after people with an average balance of around $1 million, so we’ve designed the investment around that,” he explained.
“It is also suitable for pension clients so people can draw a pension from it, so it can be a life-long product.”
The administration cost on the fund is competitive and will be at a level of 0.45 per cent. Foster said this is comparable to Australian Super, which charges 0.405 per cent.
“That’s 0.045 more, which is not much,” Foster said.
