Reflecting on research from Rice Warner suggesting “a plateau in market share of the SMSF segment over the coming decade”, Hostplus chief executive David Elia told ifa the industry fund was not becoming complacent.
“[The Rice Warner research] is not to say that the SMSF sector should be ignored and … Hostplus has strategies in place to cater to this market,” Mr Elia said.
“Our financial advice strategy will play an increasingly important role in ensuring we don’t lose members that might be considering setting up an SMSF.”
Hostplus’s “advice strategy” has a number of arms, including its over-the-phone general advice service, 24-hour online “Super Adviser” for limited advice and 11 comprehensive financial advisers licensed by Industry Fund Services.
Mr Elia also said the industry fund is planning to launch a pooled superannuation trust (PST) which will “allow SMSF investors to invest with Hostplus and benefit from [its] performance”.
Hostplus’s direct investment option ChoicePlus – which was soft launched in September 2013, also in a bid to offer something to “those considering an SMSF” – has attracted 600 members since inception, investing more than $16 million via the platform, Mr Elia added.
The industry fund CEO also said the MySuper regime has meant that “funds need to work hard to differentiate themselves”, with “factors such as brand increasingly important”.
Hostplus is continuing to build its brand in 2014, which follows on from the fund’s decision to increase its presence back in 2004.
The comments come as Industry Super Australia – of which Hostplus is a member – has pledged to ramp up its television advertising spend.
They are doing the right thing by allowing investors to have the opportunity to invest on their own and test their skills. If it turns out DIY investing is not for them they revert to a managed option. Anyway not everyone has 200K to 300K to start their own SMSF? you’ve got to start somewhere! Every large investor started as a small investor!
Quite right Steve, and the point made by TD that the average funds in the 600 targeted clients was under $30,000 really makes one wonder what the fuss about SMSF being a threat to their client base really is?
It seems that Hostplus has already determined that SMSF’s are inappropriate for their members before they even talk to them! Interesting – isn’t that what Storm did with gearing? I’d love to see a follow up story regarding the Reasonable Basis for this advice. I’d also be interested in seeing details of how many times ISN “advisers” recommend setting up an SMSF versus winding up or not setting one up. I suspect that they have never thought an SMSF was an appropriate product.
Smsf’s dont pay commissions to financial advisers either. Think ISA should be more thoughtful in their next campaign otherwise they might actually be spending their members advertising dollars promoting another unintended cosequence!
Wow has attracted 600 new clients to the platform for a grand total of $16 Million. If my calculator serves me correctly that is and average of $26,666 per member. Hardly SMSF prospects. Good luck with this as a strategy but you may just be looking at wrong end of the bolting horse. Great for a laugh though.
Hmmm….in order to meet their ‘best interests’ obligation, won’t Hotstplus’ advisers be compelled to recommend to most members of the fund with an appropriate balance that they would be better off with a SMSF?
Funny how there where massive changes by Labor to stem the flow from the (perfect for every one) ISA. It was all very good while clients were forced into their funds. Now they can leave,costs increase dramaticly, advertising, advice, payng money to Labor etc etc. They were so dumb they made other funds strip out their advice charge! Now people can see there is no advantage with an ISA fund. They just had a different fee structure. All broaght to you by the brightest in the Labor Party. Gillard, Rudd, Thompson, Williamson, Conroy, Shorten on nd on it goes. the test is, would you let them in your home? Not on your life!
WOW! A Major Industry Fund employs 11, not 110 financial planners, or was it a typo error to offer advice to the 1,000’s of members. No wonder they have members getting out. No advice!
Wow, what a comprehensive service offer! Talk to a call center, follow some fact sheets or talk to a comprehensive adviser who pushes you into an industry fund because they don’t advise on anything else. With such smart strategies like this the union funds will crush the SMSF market.
I note that the strategy is to “safeguard against members leaving to set up self-managed superannuation funds” and NOT “to ensure that our clients needs are are looked after as our first priority”.
AND then they will spend members funds to “ramp up its television advertising”.
Glad these guys are on the side of the the little guy and gal!