ING Super to allow 100% allocation into LICs/ETFs

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Observer, 21st Mar, 2017.

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  1. Observer

    Observer Well-Known Member

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    FYI.

    ING Super is updating their investment rules/fees from June 1. Previously it was only possible to invest up to 80% into shares. It's updated to allow 100% allocation providing the investment is into LICs/ETFs.

    Also, it'll be possible to allocate up to 50% of the balance to major LICs/ETFs. Previously was restricted to 20% only.

    I'm going to restructure my super portfolio a bit come June 1.

    https://www.ingdirect.com.au/assets/pdf/SignificantEventNotices20160321.pdf
     
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  2. Gav

    Gav Well-Known Member

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    It appears there fees are going up quite a bit as well, from $300 odd to 0.5% capped at $2,500 (or something similar) which is not so good....
     
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  3. ACMH16

    ACMH16 Well-Known Member

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    Yup, this takes them from being the cheapest quasi-SMSF product to being in (roughly) the same range of costs as an SMSF. Certainly worse than the Aussuper quasi-smsf offering now and almost certainly worse than the cheaper options of trustee management (as this will be $2560 plus MERs on the underlying investments, versus something between $52+0.02%-$78+0.31%).
     
  4. Gav

    Gav Well-Known Member

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    Thx - when you say Trustee management" does that mean a wrap type account?
    Sorry if its a stupid question, just trying to familiarise myself with the different options out there.
    Thx
    Gavin
     
  5. Zenith Chaos

    Zenith Chaos Well-Known Member

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    I was about to say yes because of the increased flexibility, but now I'm saying no, because the only reason I chose this superannuation fund was the fee.

    Anyone got any suggestions on what I can do? The fees are basically going to go from less than 0.1% to 0.5%.
     
  6. Hodor

    Hodor Well-Known Member

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    Damnation.

    I was just thinking yesterday the ING low fee thing might have just to be a way to sucker people in and then move them up. I'm annoyed.
     
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  7. Zenith Chaos

    Zenith Chaos Well-Known Member

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    I also failed to mention that if I sell now my CGT will be significant as I bought predominantly VAS, VGS, VEU, VTS in July 2016, which have given me a 7.5% return in that time. Dumb luck. I'm blaming Bogleheads for this problem.

    This change in fees would also result in me being $50k worse off when I hit 60 assuming 6% growth.

    I've already filed my letter of complaint.
     
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  8. Hodor

    Hodor Well-Known Member

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    0.5% is crazy for doing basically nothing, I'll be calling them. Wondering if it is possible to do an off market transfer of the shares without causing a capital gains event, not that mine will be that much.

    Now it is back to the drawing board for other options. Guess the risk of fees been hiked etc is a risk, especially with non industry super funds.

    Keen to hear if anyone comes up with a suitable option for long term low fees with self investment options.
     
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  9. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Start here, I might do some analysis myself:
    http://forums.whirlpool.net.au/archive/2603422
     
  10. wombat777

    wombat777 Well-Known Member

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    I'll be calling too. Seriously annoyed. I have just directed a friend to setup an ING super account. Their account has only been open a week!

    They also need to improve their reporting and the list of ETFs available. The existing online system is terribly clunky. Plus there is no way to easily track a portfolio in sharesight :-(
     
  11. Gockie

    Gockie Life is good ☺️ Premium Member

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    Sounds a lot like me!
     
  12. wombat777

    wombat777 Well-Known Member

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    No. Another friend. Starting off a much lower base and not that familiar with our super system.
     
  13. Perthguy

    Perthguy Well-Known Member

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    If it has only been open a week then it will be easy to roll over to somewhere else.
     
  14. Anne11

    Anne11 Well-Known Member

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  15. wombat777

    wombat777 Well-Known Member

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    True. But money lost in the process.

    Fees would certainly be lower than the fund they were using. Will watch this thread and see if other options are identified.

    Commsec or the other big brokers/banks could really make a move in this space. Just charge a more reasonable admin fee and regular brokerage. They could also provide a much better user interface and reporting in the process. Anyone with contacts ???
     
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  16. wombat777

    wombat777 Well-Known Member

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  17. Perthguy

    Perthguy Well-Known Member

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    :mad:

    I got my mate onto living super as well. Not sure where to send him now.
     
  18. Hodor

    Hodor Well-Known Member

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    The fees had increased a little over the 300 last I checked. Still 300 odd max to 2500 max is over 800%.
     
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  19. wombat777

    wombat777 Well-Known Member

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    Put in a phone complaint this morning.
     
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  20. wombat777

    wombat777 Well-Known Member

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    Oh, look at this old ING Direct marketing material! They were commenting about how hideous SMSF fees are.

    They will now be charging fees at the same level! Typical charge for Direct Investment choices will be around 0.54%.

    Screen Shot 2017-03-23 at 4.57.47 PM.png
     

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