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(March-2003) Engineers weld new alliance
Investment services group 20/20 Funds DirectInvest has joined forces with the Institution of Engineers Australia to launch a new industry super fund, the Engineers Employer Superannuation Plan (EESP), for employers of the institution’s 65,000 members.
The fund will operate through Colonial First State’s FirstChoice Employer Super via a special deal that reduces annual management fees by up to one third, eliminates entry and exit fees and offers 36 investment options across all asset classes.
DirectInvest hopes to secure $30-40 million in funds under administration by the end of the first year of EESP’s operation, and has received enquiries about the fund from companies ranging in size from 20 to 130 employees.
DirectInvest’s managing director Michael Lannon says: “Our research indicated that many members of the Institution of Engineers Australia employed by small to medium enterprises were accessing employer super through expensive master trust platforms with entry fees of up to five per cent.
“Where this fund really works is where a company has a super fund of a couple of million dollars, with no fee breaks. By working with us, they get to maintain their own plan, and by aggregating with other funds, they get lower fees on the same scale as they would in larger companies or larger funds.”
According to Lannon, the direct savings for employees created by the fee structure could result in a young engineer receiving 29 per cent more super at retirement age.
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