Summit has ramped up its master trust and wrap account services in an effort to win a bigger share of the master trust market.
Summit has ramped up its master trust and wrap account services in an effort to win a bigger share of the master trust market.
Summit has added new investment options and an on-line service to the master trust. The new investment options offers two methods of portfolio selection — discretionary and non-discretionary — on its superannuation, personal pension and investment plans.
The discretionary option, now called Investor Select, offers a choice of 131 listed securities and 85 managed investment funds.
The non-discretionary, called Summit Select, is giving investors a choice based on their investment strategy ranging from defensive to high growth. Within each of the investment strategies, there are 10 pre-selected investment portfolios to choose from. The portfolios are designed and monitored by van Eyk Research.
The new on-line service, using the Internet, will allow clients to obtain reports on portfolio valuations, asset allocation and capital gains tax implications. The implications of asset switching are also available on-line.
Curiously, the on-line service is only available during certain periods, 7am to midnight on weekdays and 7am to 6pm on Saturdays. It is not available on Sundays, but Summit admits this is under review.
Summit general manager Kim White says the product enhancements have been combined with a fee reduction to make the product more competitive and boost the service components.
“Our aim has always been to provide a top quality service that gives investors and advisers access to a wide range of investment options while releasing them from the administrative burden of managing a diverse investment portfolio,” he says.
The fee changes have seen the abolition of the $100 membership fee and management fees cut. For the first $100,00 invested, the management fee for the Summit Select option is $1.25 per cent, down from 1.35 per cent. The old figure stays for the Investor Select option.
In the past investors had to put more than $5 million into the investment plan to obtain the lowest fee of 0.5 per cent. This figure has been cut to 0.25 per cent and the cut-in point is now $1 million.
Similar fee reductions apply to Summit’s superannuation plans.
The master trust has enjoyed rapid growth in recent years with the funds under management almost doubling in the past 12 months. It now has $1.14 billion under management, up from $653 million last year.
