RaboDirect's online SMSF gives investors more control
RaboDirect's new online self-managed superannuation fund (SMSF) is designed to hand back control to financially and technically savvy retail investors.
In conjunction with Cavendish Super, the RaboDirect Online SMSF not only gives trustees the option of over 60 managed funds under the RaboDirect investment umbrella, but it allows investors to access investment options outside of that space as well.
RaboDirect Australia and New Zealand investments manager Tim Hewson said quite often in the traditional master trust and superannuation market there are severe penalties for clients who invest in products outside of a provider's investment offering. He added that retail investors want online access and the ability to choose what they want to invest in.
In regards to the fund, investors are not locked into bundled fee packages, and are able to choose the level of service they require - such as their own desired administration platform, financial advice, or broking service for listed securities.
According to Cavendish managing director Andrew Hamilton, data from various investment funds filters through to Cavendish, regardless of whether an investor sits on RaboDirect's investment platform or not. This gives trustee's simplicity by providing a full view of their SMSF through one online source, he added.
There is no restriction on how to manage the fund going forward, and while the fund is specifically targeted at retail investors, it has the capacity to include financial advisers in the investment process as well, he said.
Hewson said the online offering is not intended to bypass the financial advice process, but to give clients flexibility all the way from establishment of the fund to investing in products and back-end administration. Administration fees are charged on a fixed monthly rate, regardless of the size of an investor's asset pool.
"For years, investors have complained of hidden SMSF costs, lack of choice and unnecessary complications. Now a solution is available which puts the investor where they belong - back in control of their investment," Hewson said.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
