GROW Super reduces its fees
The move comes just three weeks after rival super fund Spaceship dropped its fees.
New super fund GROW Super has today announced it's lowering its fees and introducing new features to the way its members can select their insurance cover. Since launching in May, the new fund which has been initially targeting Australian millennials has successfully attracted over 12,000 members.
Until now the boutique fund has charged a fee of 1.85% p.a. on your investment; quite high compared to many other funds, and especially for a new player. From today GROW Super will charge a much more competitive fee of 0.95% plus $1.65 per week.
The move comes just three weeks after its rival Spaceship announced it would be lowering the fees on its inaugural investment option from 1.60% p.a. down to 0.99% plus $78 p.a. Spaceship has copped a raft of negative media attention since it launched in January for aggressively targeting millennials with its tech-focused product and hitting them with high fees. However, when it lowered its fees CEO Paul Bennetts said, "It wasn’t at all to do with the negative press that we received. It’s just part of our business as usual. It’s just constantly trying to benefit our members."
While both GROW Super and Spaceship are newly launched funds targeting millennials and promising to disrupt the traditionally stale $2.3 trillion superannuation industry, a key difference lies in their investment strategies and product features. Spaceship, for example, loudly advertises its heavy weighting towards tech stocks, saying it's investing where the world is going, not where it's been.
At an event held at Tank Stream Labs on Tuesday, GROW Super CEO Joshua Wilson questioned Spaceship's tech-heavy strategy, saying a lot of the big tech companies it invests in such as Facebook and Amazon have already had their big growth periods. He also used the previously-popular Myspace platform, which is now virtually non-existent, as an example of a failed tech company that he wouldn't want to be invested in today.
As well as lowering its fees GROW Super today announced its latest product update which allows members to customise and self-select their insurance. Members can do this via a series of Tinder-style swipe questions, giving a better understanding of who they are. The fund says this will drastically lower members' premiums by encouraging them not to simply fall into the default option. Members can use the app to amend their insurance cover in real time.