The fund launched with an accumulation product called Vanguard Super SaveSmart, which includes a MySuper default fund called Lifecycle, as well as a “range of index-based diversified and single sector investment options as part of the choice menu,” the statement noted.
“We want to deliver members a low-cost, high-quality super fund that includes a default offer designed to move with them right through life,” said Daniel Shrimski, managing director of Vanguard Investments Australia, in the statement. “As the first new entrant into the Australian superannuation (pension scheme) industry in years to gain an RSE (Registrable Superannuation Entity) license, and launching despite industry consolidation, we’re here because we truly believe we can improve retirement outcomes for Australians and be a catalyst for much needed change in the industry.”
Vanguard also noted in the statement that it plans to publish a study later this year which found that one-half of Australians are “unsure about the fees they pay to their (superannuation) fund, and 2 in 5 people are unsure if their fund is low cost.”
According to a report from the Association of Superannuation Funds of Australia, the country’s superannuation assets totaled A$3.3 trillion ($2.1 trillion) as of the end of June 2022, a 0.5% decline from the prior year.
ASFA “is the peak policy, research and advocacy body for Australia’s superannuation industry,” according to its website.
“There remains a lot of variety in how superannuation fees are constructed and communicated to members – making it difficult to truly understand how much they are paying each year,” added Mr. Shrimski in Vanguard’s statement. “Vanguard Super’s fees are deliberately structured to be transparent and competitive. The fund’s fees are presented on a yearly fee basis which incorporates the investment cost, administration fee and transaction costs.”
Read More: Vanguard Group opens Australian pension fund with a focus on low fees