A low-cost super fund for risk-averse Aussies
Defence Super, the new super fund from Defence Bank, was set up to meet the demand from its 90,000 members who wanted access to sharemarkets as well as term deposits on its investment choice menu.
Defence Super is a low-cost, straightforward fund for the accumulation phase.
Defence Bank also has a pension product that includes an account-based pension for retirees as well as a transition to retirement pension for pre-retirees.
The fund offers five investment options - growth, balanced, conservative and cash-plus, as well as the bank's popular term deposit, which members can also hold as a personal term deposit.
Fees include a $30pa administration fee plus investment management fees ranging from 0.6% to 0.8% depending on the investment option, plus a risk-reserve fee of 0.12%.
Term deposits charge a fee of around $200pa. There are no establishment, contribution, withdrawal and termination fees.
The super fund follows Defence Bank's retirement savings account (RSA), set up three years ago to meet the demand from members looking for a certain return and capital preservation in a volatile market.
The bank has 43 branches around Australia but the super fund is designed so that members can manage it online, 24 hours a day, seven days a week.
The fund is run by Financial Synergy's CUBS Superannuation Fund, which operates super funds for mutuals such as building societies.
Money verdict
This fund will be a hit with Defence Bank's risk-averse members.
If you want a plain vanilla super fund that is largely online, this one could be for you.
If you want more investment options - such as direct shares and exchange traded funds and more pre-mixed options - then you need a fund with a broader investment choice.
Defence Super's investment options are yet to run up a rate of return. The fees are competitive with other low-cost funds.
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