A recently-launched member advice services offering from AvSuper saw more than 15 per cent of the fund's over-50 members use the service in the seven weeks since the launch, according to fund chief executive Michelle Griffiths.
AvSuper was already offering intra-fund advice to members via the class order relief but took advantage of recent regulatory changes to launch a full income stream advice module, Ms Griffiths said.
"It allows us to provide more personal advice that goes beyond intra-fund advice so we can assist members in making decisions," Ms Griffiths told InvestorWeekly.
The member advice team could potentially require extra resourcing, subject to demand and changing regulatory requirements, she said. However, advice is an area that has always seen very strong demand from AvSuper members as a result of high net balances, Ms Griffiths said.
Regulatory changes around intra-fund and scaled advice offered more of an opportunity than a challenge because the framework around what a fund could offer members was now firm, she added. The advice offering is completely in-house, and uses Decimal financial planning software to develop statements of advice, Ms Griffiths said.
The fund has been able to increase funds under management (FUM) in the income stream division from $65 million in June 2011 to $100 million in October 2012, she said. According to the most recent AvSuper annual report, the fund had just over $1.2 billion in FUM at 30 June 2012.
