Master trust expense a ‘myth’
Corporate master trusts are generally less expensive for members than corporate funds, Deutsche Asset Management head of corporate super, Ken Lockery, told today’s Corporate Superannuation conference in Sydney.
Lockery described the “often promoted” notion that corporate funds were cheaper than outsourced master trusts as “a myth”.
“Like not for profit funds, many corporate master trusts have no agent fees or commissions and similar (or lower) service provider costs due to economies for scale,” he says.
“The trustees of a corporate fund may be not-for-profit, but the same could not be said of its administrator, investment managers, lawyers, consultants and the like.
“While it is fair to say that industry funds are generally cheaper than master trusts, they also typically provide far fewer services. On the other hand, most corporate master trusts are in fact cheaper than most stand-alone corporate funds and provide more services.”
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
