POWERED BY MOMENTUM MEDIA
Club Plus makes play for direct equities
Club Plus plans to launch a direct equities product to complement its term deposit offer within the next six months.
According to chief executive Paul Cahill, members had no current interest in direct equities, but the fund wanted to move ahead of the game on the back of the quick success of its term deposit launch in March.
Club Plus recently launched the term deposit product for members in the accumulation phase. Cahill said the product had attracted $7 million in funds in one week. He said that during the first three months of launching the product to its pension members, 20 per cent had moved their funds into the term deposit option.
"Our next strategic step is the direct shares because it's like the left hand and the right hand…this is the time you bring it in because no one wants it," he said.
Cahill said if the fund had introduced term deposits two years ago, it would be at full capacity now. Club Plus has moved onto the second version of its term deposit model, which Cahill said was a benefit of getting in early.
"We've been down that path. We've seen how it works and doesn't work. We're working on gen 2 which is the next phase," he said.
He said offering direct investment options to members was a strategy to stop members leaving to start a self-managed super fund.
Once the fund had direct equities in play, government cuts to the official cash rate would pose less of a threat, he said.
Club Plus has found a platform and plan to administer the offer through its current administrator, Australian Administration Services.
"We've got the proposal. It's all ready to go. It's just what date we drop it," he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
