ARF launches direct shares option
The Australian Retirement Fund (ARF) has become the first industry fund to offer an investment option that allows its members to buy and trade shares using their superannuation.
To be available from December 2003, the ASX 100 Shares Investment Plan will allow eligible members to invest in any one or combination of shares in the Standard & Poor’s/Australian Stock Exchange 100 Index.
Macquarie Equities will provide information on all S&P/ASX 100 companies on ARF’s website through daily and more detailed reports, and will serve as broker to the plan. Members will also be able to buy and sell shares through the website.
ARF executive director - investments Elana Rubin says the ASX Plan was launched following the success of the fund’s Extra Investment Plan - Coles Myer option.
“The Coles Myer option served as a trial, and was very successful, and we received feedback from members that they would like to invest some of their super in a broader range of shares,” Rubin says.
Members will pay a low flat annual fee to participate in the plan, which Rubin says compares favourably to retail or wrap superannuation accounts, which generally charge a sliding fee linked to increases in asset value. She describes brokerage rates as “competitive”.
ARF has also set eligibility criteria for entry to the ASX plan, to ensure members maintain a diversified investment strategy, only allowing half of a minimum account balance of $10,000 to be invested in the plan, with no more than 20 per cent invested in a single stock.
AUTHOR
Mike Taylor
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