Telstra Super to hire planners

TELSTRA Super is poised to become Australia’s first corporate superannuation fund to open its own in-house financial planning arm.

According to an article inSuper Reviewmagazine to be published next week, Telstra Super chief executive Terry McCredden says the planning arm should be operational next year. He says the planning unit will operate as a subsidiary company of the fund, but it has yet to apply for a licence from ASIC.

Superannuation funds have been gradually moving into financial planning over the past few years as many of their members head into retirement. Most of the funds that have set up financial planning arms are industry funds. Telstra is the first from the corporate sector.

Telstra Super, Australia’s largest corporate fund, is currently advertising for a general manager to establish the planning business and expects to initially hire between three and five qualified planners. They will offer advice on Telstra Super and competing superannuation products.

McCredden says Telstra Super’s rollover and allocated pension products offer an attractive and lower cost alternative to similar products available in the retail market.

At present, 30 per cent of Telstra Super’s members are in rollover products, accounting for funds under management of $1.2 billion. The planning arm, however, is expected to grow this figure significantly.