Industry superannuation fund Non-Government Schools Super (NGS Super) believes its decision to implement an in-house financial planning model under the auspices of Mercer's Australian Financial Services Licence (AFSL) has been validated by its outcomes.
The fund's claim is contained in a paper issued this week and authored by NGS Financial Planning manager of financial advice and education Andrew Dunkerley.
As well, NGS Super chief executive Anthony Rodwell-Ball has claimed that while outsourcing might have given the fund a larger planning footprint, the benefits of scale might not have outweighed the benefits of specialisation.
"If NGS Financial Planning had chosen to outsource everything to a large financial planning organisation, it is likely we would have representatives in more locations in Australia and service more members as a result," he said.
"However, we had to weigh the benefits of scale against the benefits of specialisation.
"Our advisers are full-time employees who are engaged solely to service our members," Dunkerley said.
"While some funds engage a third-party provider for comprehensive advice, which can lead to planners working for multiple funds and therefore a diverse range of members, our planners only work for NGS Super, meaning they're able to gain a thorough understanding of our member demographic and their individual needs – something that may be impossible, or at least far more difficult, with an outsourced model of advice."
Rodwell-Ball said that since the establishment of NGS Financial Planning, productivity (defined as the number of plans produced) had risen by 35 per cent.
"We'll soon implement an online advice model, enabling members to receive not just education, but personally tailored recommendations about appropriate investment strategies, how much they need to contribute to ensure a comfortable retirement and appropriate levels of insurance to manage their risk," he said.
