Netwealth adds foreign currency to super platform
Platform provider netwealth has introduced a foreign-currency investment option that targets United Kingdom residents who are rolling over their superannuation to Australia under the Qualifying Recognised Overseas Pension Scheme.
The new feature allows members to retain all or part of their benefits in pounds sterling via netwealth Super Wrap and view it in Australian dollars on the website, which will be updated based on the daily exchange rate.
“They can actually then decide at which point they’ll start to convert parts or all of their funds into Aussie dollars,” netwealth executive director Matt Heine added.
Heine said the new investment option was driven by adviser concerns around moving their clients’ existing pension funds from the UK to Australia at a time of a perceived unfavourable exchange rate.
“With the global financial crisis the currency has become incredibly disjointed and clients who were previously very happy bringing their pension funds across to Australia and managing them here have been reluctant to do so because, in some cases, they would lose 25 to 30 per cent of the value of their pension fund,” Heine said.
Around 20,000 UK residents move to Australia annually to retire or finish their working life, according to Heine, who said that this group represented a growing market.
Heine added that netwealth was also considering the addition of other currencies to this feature.
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