Vanguard announces new digital adviser solution

With the vision of “reshaping superannuation for the benefit of all Australians”, Vanguard Super launched on Friday with an accumulation product — Vanguard Super SaveSmart — which includes a MySuper default fund called Lifecycle, as well as a range of index-based diversified and single sector investment options as part of the choice menu, the firm said in a statement.

“Vanguard believes saving for retirement shouldn’t be complex. That’s why we’re delighted to launch Vanguard Super, a compelling new offer that combines real simplicity with smart, global investment expertise. We want to deliver members a low-cost, high-quality super fund that includes a default offer designed to move with them right through life,” Vanguard Australia managing director, Daniel Shrimski said.

“As the first new entrant into the Australian superannuation industry in years to gain an RSE licence, and launching despite industry consolidation, we’re here because we truly believe we can improve retirement outcomes for Australians and be a catalyst for much-needed change in the industry.”

Vanguard confirmed a 0.58 per cent yearly fee on its default options, representing the lowest in the Australian superannuation market for member balances under $50,000, and members aged 47 years and under.

“Vanguard Super’s fees are deliberately structured to be transparent and competitive. The fund’s fees are presented on a yearly fee basis which incorporates the investment cost, administration fee and transaction costs,” said Mr Shrimski.

Moreover, he explained that Vanguard Super’s lifecycle offer differs from existing products in the market as it adjusts 36 times over the course of a member’s life (without switching fees), versus an industry average for Lifecycle offers of four or five adjustments. This provides members age-appropriate asset allocation adjustments and the peace of mind of automatic de-risking of their portfolio leading up to and during retirement.

Namely, Lifecycle members aged 47 and under are invested in a diversified portfolio with a higher allocation to growth assets. From age 48, the Lifecycle investment undergoes a series of annual changes reducing the allocation to growth assets, while increasing the allocation to defensive assets.

From age 82 onwards, the asset allocation is designed to have a greater emphasis on reduced risk to shield retirement savings from the impacts of volatility.

Mr Shrimski also confirmed that Vanguard will soon add a competitive pension offer and digital access for advisers.

“We aim to continuously improve and embrace innovation and personalisation to help members feel more confident about their retirement.”

Adviser access to Vanguard Super will be delivered through the Vanguard Adviser Portal — a new digital service currently under development for Vanguard advisers, and due to be available in the coming months. The portal will offer a streamlined online solution to managing Vanguard client accounts, linking to both Vanguard Personal Investor and Vanguard Super accounts.

“We are taking the time to ensure what we deliver through the adviser portal provides a seamless and efficient way to manage their Vanguard clients, both inside and outside of Super,” Mr Shrimski concluded.