Australian Ethical will be offering their existing default balanced option as their MySuper product while ANZ announced its ANZ Smart Choice Super would form its MySuper compliant solution. Australia Ethical said its MySuper product is unique from other MySuper products as it combines active management, ethical investment and some of the best value insurance in the market.
Australian Ethical believes default members with relatively low balances will benefit long term from active funds management as it will increase retirement savings. It will also ensure that low balances are not unnecessarily drained by high cost insurance.
Australian Ethical said its MySuper option will be invested into areas making a positive contribution to the world such as reducing energy demand, technological developments and medical innovations. It will avoid investing in companies associated with issues such as coal, oil, tobacco, gambling and child labour.
Australian Ethical managing director Phil Vernon said the MySuper option is targeted towards employees in socially or environmentally responsible companies, institutions and not-for-profit organisations.
“Offering an ethical superannuation option to their employees is an opportunity for responsible employers to provide competitive retirement savings options, knowing that they are making a positive impact on society and the planet we live on,” said Mr Vernon.
Mr Vernon said the option would complement an employer’s commitment to ethical business practices and a purpose driven culture.
“We are confident that the existing high demand for our default option will continue under MySuper. As an ethical employer who ‘gets it’, you want it in place for like-minded staff,” he said.
ANZ said its Smart Choice Super has half the fees of most Australian super funds and automatically adjusts asset allocations throughout the customer’s lifetime. It also enables customers to view their upper online.
ANZ global wealth CEO Joyce Phillips said the solution is focused on making it simple for customers to engage with their wealth.
“ANZ Smart Choice Super was designed with more than the MySuper objectives in mind. It’s simple to use, more transparent and this will help increase our customers’ engagement with their superannuation, at less than half the average Australian super fees,” Ms Phillips said.
IOOF managing director Chris Kelaher said rather than adopting a lifecycle strategy, IOOF's MySuper option will offer a "dynamically managed diversified fund strategy" called IOOF Balanced Investor Trust.
"IOOF will look to complement this solution with a range of tools and services to help investors manage retirement outcomes incorporating a range of factors including time to retirement," he said.
