BT corporate super takes off
BT Funds Management’s corporate superannuation master trust business has almost doubled funds under management over the past year, with $700 million under management at the end of the financial year, compared to $400 million in 1999.
Australia's total corporate super master trust figures currently total more than $32 billion and is projected to reach $120 billion by 2008, according to research by Rice Kachor.
BT Corporate Investment Services head Dan McGee says the group also estimates its corporate super master trust will hit the billion dollar mark by the end of the year.
McGee says superannuation master trusts are moving towards online servicing and administration facilities, which he says "will play a pivotal role in providing for a full choice environment."
"Investors are beginning to show a higher demand for growing investments, particularly in the US with the equity commitment if 401(k) plans now averaging around 76 per cent of total asset allocations," he says.
"This suggests that the mediating role of advisers and consultants will be critical going forward as the cost of failed advice or no advice is potentially tremendous for individuals. It's a very exciting time to be in the superannuation market."
McGee, who recently moved from BT's US-based parent, the Principal Financial Group, says the share of mutual fund investors accessing the Internet has almost doubled in the past two years and the number of investors visiting mutual fund sites is up 50 per cent since 1996.
"In the US consumer choice is paramount and this trend is also evident in the Australian market. The average number of investment options within 401 (k) has doubled to 10 over the past five years and this has been made possible by the use of daily valuations and internet switching facilities," he says.
In line with the US growth and interest of online facilities, BT corporate investment services will soon release an Internet-based administration facility, BT Online.
McGee says the electronic facility will enable employees to "cheque split, that is, to contribute to more than one fund without additional administration worries.
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