Platform provider Hub 24 is looking to set up a pooled self-managed superannuation fund (SMSF) offering, for individuals who want an SMSF but do not have a large enough retirement savings asset base to justify the move.
Traditionally, these individuals had superannuation balances between $100,000 and $300,000 and had been serviced by the retail sector, Hub 24 director Darren Pettiona said.
“We want to build an SMSF structure that has the look and feel of retail super, so what we are looking to do within Hub is to look at a pooled SMSF where people can get access to all of the assets within Hub,” Pettiona said.
“Being a pooled fund they don’t have the issues around being a trustee, which can be restrictive.”
The pooled SMSF will be overseen by a corporate trustee.
Hub 24 estimates the structure can be offered for about $500 a year, which is significantly lower than the cost of administration for most SMSFs.
As the running of the fund is technology driven, members would be restricted to a mainstream range of investments available on the Hub 24 platform, including non-unitised managed funds, standard managed funds and listed securities.
“If people want to put investment properties into their portfolios, they’d have to go into what is considered the traditional SMSF world, because as soon as you allow all these little bits and pieces outside that investment world, manual workings are needed,” Pettiona said.
He said once members reached an asset balance of around $300,000 it would be worth their while to move to a traditional SMSF structure as well.
Hub 24 is looking to make the new superannuation structure available to individuals in June.
“We think this will be the next generation of what super is,” Pettiona said.
