AustralianSuper is building a so-called member direct option in collaboration with global financial services firm UBS.
The option will allow members to purchase S&P/ASX 300 Index equities directly, invest in term deposits and buy exchange-traded funds (ETF), AustralianSuper general manager of growth and opportunities Paul Schroder said.
It will also feature reporting at an individual member level including individual tax treatment. Members will also be able to access research reports.
“This is not a competitor to SMSFs (self-managed superannuation funds),” Schroder told delegates at the annual Wraps, Platforms and Masterfunds Conference on the Sunshine Coast yesterday.
“It will be an attractive option for those members who want more control over their portfolio and want it to include direct equities and ETFs.”
However, the option will come with several constraints.
Members can put only 80 per cent of their super balance into the member direct option, and the remainder will have to be in another AustralianSuper option.
Also, individual stocks cannot exceed 20 per cent of the portfolio.
Schroder said the member-direct option will have a “materially competitive fee” versus other offerings.
