The new super fund, Zuper, is yet to officially launch and is currently looking to attract potential members to its waitlist.
While it is targeting the broader population with its offering, in an attempt to remedy the issue of disengagement with superannuation, Zuper chief executive Jessica Ellerm told SMSF Adviser the fund has similar appeal to SMSFs.
“Australians are attracted to SMSFs for the same reason we think they’ll be attracted to Zuper – choice in where their money is invested,” Ms Ellerm said.
“SMSFs come with significant administration overheads and responsibilities, which many Australians with a lower super balance can’t justify taking on. So Zuper could be a great alternative option to an SMSF.”
Ms Ellerm said Zuper will use mobile technology to provide services such as real-time balance, deposit alerts, and visibility of the industries and types of investments a member’s super fund is engaged in.
She expects that, despite aiming for broad appeal, those within the 24-39 age bracket will be attracted to the investment model.
“The core of the fund is invested solely in index funds and ETFs, which allows us to remove active management fees and keep costs down across the board.”
One of these days the big public offer super funds will come to understand that there are so many more benefits to having a SMSF than just the investment piece. In Zupers case they beleive Index funds and ETFs will provide all that is needed in the investment piece as well. I would have never thought that.
I can’t see this as a direct competitor to SMSF’s. This product appears to be aimed at low balance individual’s looking for a very low touch offering. People who use SMSF’s generally have a larger balances and are looking for assets that aren’t available in other (Retail) super offerings such as Business Real Property and other direct assets.
Lol! What’s new about a low cost ETF portfolio? SMSF admin fees are already below $1k. Does ZSuper offer commercial property, bullion, family aggregation, family economies of scale?
another product that will lure people ‘s savings away