Australian Skandia has launched Skandia One Corporate Solutions, an online corporate superannuation service for financial advisers and their clients.
This follows the launch of the Skandia One product suite in February.
The new product has one fee structure with a single management fee covering administration, investment management, and a built-in adviser service payment.
CEO Ross Laidlaw says although there has been a lot of debate within the industry over the future of corporate superannuation, he is confident that their latest product will meet a niche that is currently being overlooked.
He says there is strong demand for a corporate super product that is designed for investment above $20 million, and is well administered and advice-led.
The management fee ranges from 1.5 per cent to 2.2 per cent across all asset classes, except the Skandia Platinum International Fund at 2.75 per cent and Skandia Hunter Hall Australian Value Fund at 2.85 per cent. Part of the fee reflects the amount payable to the underlying manager.
The adviser service payment offers up to 0.5 per cent per year commission on the total plan balance, calculated and paid to the adviser monthly, and may be rebated in part or whole to the client.
The default adviser commission on insurance premiums, included in the premium rate quoted, is 22 per cent. However, advisers may dial-up from zero to 33 per cent, subject to what they negotiate with the client.
Skandia’s Head of distribution Charles Magro says: “Corporate superannuation is an advice-led style of product. Employers are increasingly realising the need for advice with regard to structuring a plan for their employees.”
The new product has a flexible remuneration package to ensure advisers are suitably compensated, according to Magro.
Laidlaw adds that as a global player, Skandia has the advantage of scale to provide cost efficiencies and competitive fees and adviser remuneration.
He explains that Skandia does not compete with financial advisers for business, as they are the company’s primary distributors.
He says: “We have never underestimated the power of being independent of funds management and not owning distribution.”
For corporate superannuation, Skandia will not be tendering for mandates or negotiating directly with employers.
Laidlaw says: “Employers are increasingly recognising the need for advice and we believe that financial advisers are well placed to service this demand.”
Skandia One Corporate Solutions’ investment menu offers over 50 discretionary and diversified options sourced from over 20 external managers.
The multi-manager diversified portfolios were created with the assistance of Mercer Investment Consulting.
The product also features a choice of death, death and total and permanent disablement (TPD), and/or salary continuance insurance options.
According to Magro, access to group insurance cover is one of the key employee benefits that corporate superannuation can provide.
