BT Financial Group is ready to capitalise on changes to the superannuation-award system being proposed by the opposition, with the Westpac-owned wealth manager becoming the third retail group to gain a MySuper license.
BT Financial Group joins Commonwealth Bank of Australia’s wealth arm, Colonial First State, and insurance company, Suncorp, plus around 55 industry, government and corporate super funds in gaining a MySuper license, according to the Australian Prudential Regulatory Authority’s website.
From October 1, BT Financial Group will roll out four MySuper products, which will emulate the group’s successful low-cost, actively managed BT Super For Life product.
BT launched Super for Life in 2007 and sells around 6000 new accounts each week through Westpac’s 853 bank branches.
Deanne Stewart, executive director and general manager of superannuation, marketing and direct for BT Financial Group said the business, through the Financial Services Council, supported the opposition’s plans to enable all MySuper products to be selected as default funds.
“Very few retail funds are currently selected, which has made things more difficult, and we would be in favour of a more open and transparent workplace-superannuation system,” she said.
Stewart said the meaning and purpose behind MySuper had been hijacked by the industry’s myopic focus on reducing fees.
“The whole point of MySuper is to create the best retirement outcome for members who don’t actively choose their investments, and we believe actively managed, multi-manager funds, based on a member’s life stage and risk tolerance, will create the better result for members,” she said.
“Creating better retirement outcomes is about performance and costs; it’s not just one dimensional. Too many people are focused solely on the price, which is at the cost of better long-term performance. But you need to balance both.”
