REST looks at corporate super
Australia’slargest industry superannuation fund,REST, has launched a new corporate division in a bid to win corporate superannuation business.
Chief executive Neil Cochrane says REST has already secured three takers, which he declined to name, and is currently pitching for the billion dollar Coles superannuation fund.
“What we’ve created is a separate, stand-alone company which will provide a corporate and superannuation product,” Cochrane says.
REST in effect ‘takes over’ as superannuation manager of the corporate fund, which outsources its trust deed to REST to act on its behalf. The new division has its own administration team, call centre and member education program. The product within the division operates much like a master trust.
“We have about 17 fund managers who work for us, so we’re getting the diversity which one would have in a master trust and the ability to service the client in the same way as anyone but at a significantly lower price,” Cochrane says.
Cochrane expects investment returns to match those enjoyed by REST, which posted a healthy 3.5 per cent return this year.
“It will benefit all our members because an increase size in the dollars under management will continue to give us better prices,” he says.
REST currently has a total of 1.2 million members and $4.2 billion under management.
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