Fund uses scale to negotiate deals with NAB, ME Bank
Melbourne, 19 October 2011: AustralianSuper has announced that it will offer its members access to term deposits through its Member Direct investment option, due to be launched later this year.
According to Ian Silk, Chief Executive, AustralianSuper, term deposits outside of super have been growing rapidly and he anticipates increased interest in term deposits within super.
Couple this with the increasing number of people moving into retirement, who often look for more certainty in investment returns, and he believes this feature of the Member Direct option will show very strong growth.
He also said the move reflects AustralianSuper’s commitment to the development of marketleading products and services at low costs. Members will be able to choose between the options of three, six and twelve month terms, with a minimum deposit of $2,000 and a maximum of $5 million.
NAB and ME Bank have been selected as term deposit providers following a competitive tender process.
The key criterion for selecting NAB and ME Bank was that they could offer sustainably competitive rates, rather than just short-term, introductory specials.
“Unlike other platforms or retail super funds we are not tied to a product provider, so we can focus on achieving the best possible, sustainable deal for AustralianSuper members,” said Mr Silk.
“Our size and scale also gives us significant bargaining power on behalf of our members in the market.
“We are committed to offering members a choice of term deposit providers and to ensuring that the rates remain very competitive. We may consider adding additional providers once we assess the take-up of the initial offer.”
John Comito, Executive General Manager, Financial Institutions Group, National Australia Bank (NAB) said “We are excited to be partnering with AustralianSuper to offer their members access to secure, high yielding term deposits. This further reinforces NAB’s commitment to delivering innovative solutions to support the Australian wealth sector.”
Ian Hendey, Group Executive Brand, Product and Distribution for ME Bank, said “ME Bank is pleased AustralianSuper will now provide their members with the ability to choose an ME Bank Term Deposit as part of their Member Direct option and attain a good return on their cash investments. This decision demonstrates AustralianSuper’s shared commitment, along with ME Bank, to act in their members’ best interests.”
AustralianSuper’s Member Direct investment option will launch later this year with around 10,000 members when it replaces the existing ASX200 Shares option. The Member Direct option will enable members who want more direct control over their super to invest in ASX300 companies, ETFs and term deposits. The Member Direct option also includes an associated cash account, as well as sophisticated research and reporting capability.
For more information please contact:
AustralianSuper
Susan Fairley
Marketing Manager
03 8648 3834 / 0419 50 44 60
sfairley@australiansuper.com
This information is of a general nature and does not take into account your personal objectives, situations or needs. Before making a decision about AustralianSuper, consider your financial requirements and read our Product Disclosure Statement, available at www.australiansuper.com/FormsPublications or by calling 1300 300 273. AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. www.australiansuper.com