Virgin enters superannuation game
(5 April 2005 – Australia) Virgin Money has entered the Australian superannuation business on the back of a A$30 million investment from Virgin boss Sir Richard Branson.
Known as Virgin Superannuation, the business will launch as a retail super fund on 1 July when the Choice of Fund legislation comes into being, allowing employees to choose their super fund for the first time.
The business is the second venture for Virgin Money in Australia, following the launch of its credit card business in May 2003. According to the company, there are now 500,000 Virgin credit cards issued in Australia.
Virgin Money said the A$30 million investment in Australia’s A$650 billion superannuation industry was the largest single investment made so far by Virgin in Australia.
The company said it had set up an aggregator model to bring Virgin Superannuation to market and had selected Macquarie Funds Management as investment manager, Superpartners as administration provider, and Trust as trustee.
Virgin Money managing director Rohan Gamble said the Australian super industry was "classic Virgin territory, being absolutely rife with ‘funny stuff’".
"Our research suggests that consumers are sick of high fees, confused by complex documentation and often duped by financial planners who pretend to provide impartial advice when in reality they’re on the payrolls of the super funds," Gamble said.
"Choice of Fund gives Australians the chance to take control of their super and make sure their money is working for their retirement, not lining the pockets of the intermediaries."
The business is the second venture for Virgin Money in Australia, following the launch of its credit card business in May 2003. According to the company, there are now 500,000 Virgin credit cards issued in Australia.
Virgin Money said the A$30 million investment in Australia’s A$650 billion superannuation industry was the largest single investment made so far by Virgin in Australia.
The company said it had set up an aggregator model to bring Virgin Superannuation to market and had selected Macquarie Funds Management as investment manager, Superpartners as administration provider, and Trust as trustee.
Virgin Money managing director Rohan Gamble said the Australian super industry was "classic Virgin territory, being absolutely rife with ‘funny stuff’".
"Our research suggests that consumers are sick of high fees, confused by complex documentation and often duped by financial planners who pretend to provide impartial advice when in reality they’re on the payrolls of the super funds," Gamble said.
"Choice of Fund gives Australians the chance to take control of their super and make sure their money is working for their retirement, not lining the pockets of the intermediaries."
Subscribe