Westpac’s BT Funds Management (BTFM) has revealed just how much margin in makes on the administration and investment management fees it charges on BT Superannuation products.
The company has told a Parliamentary Committee that in the 2019 financial year BT Funds Management earned 0.23% while in the following financial year it earned 0.07%.
Labor members of the House of Representatives Standing Committee on Economics had sought detail of what BTFM was earning from its servicing of the BT superannuation funds, noting that according to Westpac’s annual results for 2020, BT had turned a profit of $111 million last financial year and $285 million in the previous financial year.
“How much of this profit was due to: i. Related entities servicing BT? ii. Margin built into BT administration fees? iii. Margin built into other fees charged to members?” Labor’s Andrew Leigh asked.
BT also confirmed to the Parliamentary Committee that it had moved its group insurance covering its superannuation funds from its associated company, Westpac Life to AIA Australia Limited.
“In the case of group insurance, independent advice was obtained in the process which saw the appointment of AIA Australia (an unrelated party) as BT Super’s new group insurer from 1 July 2020. Prior to this appointment, Westpac Life Insurance Services (a related party) was BT Super’s group insurer.”